“Bitcoin could jump to $ 40,000; between 30 percent and 70 percent of fake trading”

The growth of bitcoin to an all-time high attracts a lot of attention among investors around the world, and not just among followers of cryptocurrencies* Prof. Yevgeny Leanders, who took over as head of the Blockchain Institute of Tel Aviv University two months ago, indicates that the cryptocurrency industry is handled with due caution: crypto exchanges, trading volume falsifications in them often increase.


In the planet, and not just among crypto coin investors, the incredible leap of Bitcoin is generating great enthusiasm. Bitcoin’s price hit more than $23,000 on Thursday morning, the highest level ever, following a surge of more than 200 percent since the beginning of the year This, for the first time since Decembe, the leading crypto currency crossed the $20,000 mark after the previous day

Given the hype, analysts in the crypto industry understand that the price of bitcoin should be handled with due caution, and the crypto market in general. One of Israel’s senior experts in the area is Prof. Yevgeny Leanders, who took up his current position as head of the Celebrating Institute for Blockchain Science at the Tel Aviv University Faculty of Management about two months ago.

The key areas of study at Leanders are the relationship between companies’ financial and operating decisions, the impact of competition on the product market on financial decisions such as the structure of resources, problems, acquisitions and mergers. His research has lately concentrated primarily on blockchain technology implementations in finance.

How accurate is the knowledge that the world’s crypto exchanges are actually publishing?

“There are studies around the world that show that between 30 percent and 70 percent of trading on crypto exchanges is counterfeit,” Prof. Landers says. “Because there is not so many oversight on these markets, it is very straightforward to counterfeit trading volumes: one approach is to generate multiple coins from which the exchange passes cryptocurrencies such that it may not impact the currency price, yet definitely raises trading periods. Another more sophisticated way.

One of the important results of our research is that stocks in higher competition appear to produce more counterfeit trade than markets that do not have heavy competition. Additionally, on competitive exchanges, we have observed complex consequences of trading data falsification. Also, exchanges operating under tighter control tend to forge fewer trading data than unsupervised exchanges. We found that exchanges operating under tighter regulation tend to forge less trading details than unsupervised exchanges.

Another point we find is that crypto exchange customers typically do not understand the falsification of trading data on the exchanges in the short term – which acts for the benefit of the exchanges and to the detriment of investors. However, investors’punish ‘exchanges in the longer term, half a year or a year, and this can be seen in these ranges in the reduction in trading fees on the same amount.

Is the situation in today’s crypto market close to what it was in 2017’s hype period?

“In terms of counterfeit trading volumes on crypto exchanges, there is currently more competition between exchanges and therefore there is also more counterfeit trading than in 2018-2017. In terms of market size, it has not grown significantly since those years. The total value of the crypto currency market is currently about 650 billion Dollars, about the same as at the end of 2017. Although market regulation has evolved and this may inspire more confidence on the part of investors, it is not reflected in the volume of cryptocurrencies or capital raising in the market. Therefore, in my opinion, the market has not matured significantly this year, though That he has definitely recovered from the downturn, ‘Crypto Winter’, which was in late 2018 and early 2019. “

How can the future be helped by the use of blockchain systems or digital currencies?

A lot of people think that Bitcoin and blockchain are the same thing, but they aren’t In my view, Bitcoin is only one Bitcoin program, and not really the most effective. Blockchain is a distributed information registration method, and it can be designed to be more secure because of its decentralization than an information system that belongs to just one individual or body. In my view, it has promise, but there are still still a few challenges along the way: it is a complex, costly system, and substantial effort is needed in convincing users to have useful knowledge.

“There are still a few issues of confidence between parties and foreign trading in the present period, as there are challenges in trade between countries due to the shortcomings of the corona, and a blockchain will assist in supply chain management, for example. For example, if an Israeli corporation buys goods from China, the products pass There are a number of intersections along the way.

Beyond that, there is a significant difference between the currencies you listed and all those tokens issued primarily in so-called ICOs in the years 2018-2017 (initial issues of digital currency; RK). In terms of stocks, these tokens are far closer because they simply confer a right to use the good or service of the company that has provided them. In conjunction with currencies like Bitcoin or Ether, it is also simpler to predict the worth of such currencies. A digital yuan, on the other hand, has no definitive value, while in the case of Bitcoin, no one promises the value in fiat currencies (sovereign currencies such as dollars, shekels, etc.; RK) that you will get for it.’

Issuing Script Tokens (STOs) may be a safe option to collect money since, unlike ICO problems in the past, it is performed under supervision, and thus it can obtain more market trust. In certain issues for investors. An STO issuance is not ideal for any corporation, however it can fit some businesses.