Assessing Bitcoin’s liquidity with Coinlib data is indefensible

Please do better, journalists

Fake volume is a well-documented problem

When I read the ‘Bit Short’ article, I immediately knew that the author Crypto Anonymous was not, and had never been, a serious crypto market participant. If they were a real trader with meaningful capital at risk in crypto markets, they would have known that many of the exchanges composing the CoinLib sample are not credible, and that the resultant data was thus completely unreliable. My credentials on this topic? I am the cofounder of Coin Metrics, a data business that licenses crypto market data to financial institutions, asset managers, and banks. The CM team is well aware of this exchange data quality problem, and has developed a 36-point whitelisting framework which applies quantitative and qualitative tests to exchanges to determine whether they are providing honest data.

CoinLib’s main exchanges include the uncredible HitBTC, Bit-Z, LBank, and ZB

A fact-checking failure by the WSJ

Now, anonymous posters on Medium are one thing. For all we know, Crypto Anon could have a massive short position and could be talking their book. We have absolutely no reason to trust them: caveat emptor. But when those claims get rebroadcasted and treated as factive by mainstream financial publications, we cross into the domain of journalistic malpractice.

BTC held by GBTC — real inflows (The Block Data)

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