The 5 largest combined cryptography grants represent less than 1% of JPMorgan

A new Hacken System Crypto Exchange Ranks (CER) study shows that traditional banks such as JPMorgan and Bank of America are more talented than the emerging cryptocurrency trading industry.

Top Uptown ranking

Cryptocurrency exchanges are like industry banks, acting as intermediaries between traders, investors, projects and other stakeholders. But the metric used to compare exchanges (daily volumes) is prone to abuse and manipulation. A new Hacken System Crypto Exchange Ranks (CER) study suggests a more accurate ranking method.

In the rising bull market of 2017, cryptographic exchanges seem to be developing to become important players in global finance. Billions of dollars worth of daily trading fueled investor confidence by telling them that they had bought something huge. But centralized cryptographic exchanges show the opposite opposite of the transparency that is so dear to us in Bitcoin.

These impenetrable black boxes completely mask their mode of operation, store the badets of customers and generate profits. The preferred method of clbadifying trade has been daily trading volumes (often self-reported), which poses obvious problems.

Techniques such as wash-trading allow trading to manipulate this metric, allowing new, unproven exchanges to emerge at the top of the hierarchy. CoinMarketCap rankings. So, how can we evaluate the real sustainability and liquidity of the stock exchanges?

All aboard, the blockchain

The solution, according to Hacken, is in the blockchain itself. As an immutable register, we can rely on the recorded information.

As a result, the only reliable trade data available are now in their cold and hot wall scales. This information may not be falsified and can be easily verified. Similarly, anyone can observe the portfolios of a particular exchange and follow all their changes and movements.

This is also comparable to customer deposits in traditional banks, reflecting the level of liabilities of each. Despite billions of dollars in reported trade volumes, trade is far behind the banks when we consider this measure.

Do not believe the hype

Hacken compared data from the five largest US and UK banks, five local emerging market banks and five largest cryptography exchanges (based on portfolio balances).

Stock market balances are not even visible in the chart compared to the five largest US and UK banks. Even excluding these banks from the equation, and by limiting themselves to the five local banks in emerging countries, the table is sobering.

On average, crypto-trading platforms are 15 behind the deposits of local banks. Their holdings hold 1,000 times less than the five largest banks in the world.

These figures may seem depressing in comparison to the billions of dollars we have fed in the past. But for cryptocurrencies to grow (and it still takes a lot to reach a truly global scale), it is important to have accurate data.

Perhaps we can now put the hype behind us and focus on the measured and sustainable growth of the industry.

What do you think of these results? Share your thoughts below!

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