Binance Smart Chain has been accused of presenting fake volumes in their statistics. Many analysts and researchers have started to take part in the investigation of the claims that have been made. PancakeSwap, which is a product of Binance, has been posting some big numbers which seem to look abnormal in some people’s view.
One of the researchers is the founder of FTX exchange, @SBF_Alameda, who has said in a tweet that the numbers that Binance has been posting are somewhat real values, but the tweet also states that he is still not quite sure about the values and cannot confirm it 100 percent.
The researcher has found out that the most occurring accusation about arguable activities comes from analyzing the number of unique addresses. The CHI gas token released by 1inch Exchange was the cause of the sudden rise in unique address values. After using an algorithm to exclude the unique addresses, the statistics started to look normal again. He also stated that the accusations received by Binance might be because of the abnormally high volumes being reported by PancakeSwap, which have no backtrack of where these numbers are originating from.
Some have stated that Binance is performing wash trading, but for Binance to perform wash trades, they must also lift the burden of high fees, often reaching hundreds of millions of dollars, which is not a good economic step for a company like Binance. Since the total locked value had also increased with the volume values, it is hard to tell that the volumes were fake. The researcher also tried to calculate the DEX AMM Velocity but couldn’t find any speed spikes in turnovers.
By collectively analyzing all of the data, the researcher discovered that PancakeSwap has shown competitive statistics in comparison to Uniswap and that PancakeSwap even has the potential of arbitrage trading, in accordance with the good transaction prices.
According to the researcher, there wasn’t enough evidence found to prove that Binance was reporting fake volumes but instead told that the data gathered showed rapid growth from a unique set of new audiences, plus the extremely high quality of projects being initiated and completed.