Crypto Liquidation Data Rigged By Exchanges? Researcher Unveils The Truth
Vetle Lunde, a senior analyst at K33 Research, warns that major crypto exchanges like Binance, Bybit, and OKX have altered their liquidation data reporting, significantly distorting the true scale of market liquidations. Since mid-2021, these exchanges have limited their reporting to one liquidation per second, impacting market transparency and leading to underreported liquidation data. This data is crucial for assessing market health and trader behavior, particularly during price volatility. Lunde speculates that these changes may be aimed at controlling market perception and enhancing user retention. He suggests that exchanges might also withhold data to maintain a competitive advantage. Alternative methods to estimate liquidation volumes exist but have limitations. Lunde expresses skepticism about the reliability of current liquidation data and calls for a return to greater transparency, though he doubts this will happen.
