Our initial team of five started building GO .Exchange late in the summer of 2018 with the goal of creating an exchange that earns its place within this crowded space. Throughout this time, we’ve seen countless new exchanges launch and achieve extraordinary amounts of volume in impossibly short periods of time.
Many even exceeded billions of dollars in daily volume. This was confusing to us as this large amount of consumer demand seemed to materialize out of thin air. Over time, thanks to internal and external research, we learned that many of these exchanges heavily inflated their volume numbers.
Some exchanges are incentivized to report fake volume metrics for a few reasons:
It allows exchanges to give the perception that there is large liquidity and user activity. These exchanges mislead project founders into believing that paying costly listing fees would be a worthy investment.
Exchanges with revenue sharing tokens give users the false perception that owning these tokens would provide lucrative dividends.
Because exchanges are ranked against each other by their reported volume, some inflate this metric to gain attention and referral traffic, outranking honest exchanges.