HashKey, the compliance exchange based in Hong Kong, has gained attention after its 24-hour Bitcoin trading volume shot up to an incredible $3.48 billion, with a total volume of $4.21 billion. Hashkey and industry titan Binance are now fiercely competing as a result of this significant increase.
HashKey Could Have Been a Wash Trade
Concerns regarding the potential for market makers to orchestrate wash trading in order to amass platform coins were aroused by the abrupt spike. To increase activity, wash trades involve buying and selling the same tokens repeatedly.
Concerns concerning the legitimacy of these operations and their adherence to the crypto regulations established by the Hong Kong Securities and Futures Commission (SFC) have been raised by the notable increase in trading volume.
Furthermore, the thorough investigation reveals that Hashkey has been given a very untrustworthy BTC/USD and ETH/USD trust score by CoinGecko, a respectable cryptocurrency data aggregator. In order to estimate liquidity, the number of orders or transactions booked is measured and used to calculate the trust score. This raises even more doubts about the credibility and trading procedures of the exchange.
The first cryptocurrency exchange in Hong Kong to receive a license to sell cryptocurrency assets to individual investors was Hashkey in August. Swiss cryptocurrency bank SEBA received a license from the Hong Kong Securities and Futures Commission (SFC) in November, enabling it to offer customers in the area various services connected to cryptocurrencies.
Livio Weng, the Chief Operating Officer of HashKey Exchange, spoke about the atypical and unexpected transactions that occurred during the event. He went on to say that HashKey Exchange is still dedicated to upholding an honest and open trading environment. To maintain the platform’s integrity, any instances of fraud or manipulation will be looked into carefully and removed from the system.
He also discussed how the current zero-rate fee and HSK activity incentives are being implemented. The aforementioned initiatives have yielded notable benefits in terms of increased transaction volume and improved handicap liquidity on the platform.
Weng was ecstatic about the HashKey community’s positive response. Weng revealed that the exchange is actively working on optimizing event policies to ensure a smooth transition in addition to addressing irregularities Users have a smooth and satisfying experience.
