In the digital currency trading market, integrity and transparency are one of the core issues that investors are most concerned about. However, the recent news that Coinsquare Exchange was exposed was shocking. According to reports, the exchange was suspected of forcing employees to use robots to increase trading volume, which triggered widespread discussion and attention within and outside the industry. In this article, we will delve into the background, impact and potential risks of this incident to the digital currency market.

As the digital currency market continues to develop, competition among exchanges is becoming increasingly fierce. In order to attract more trading volume and users, some exchanges have resorted to unfair means, such as using robots to artificially increase trading volume. However, this behavior not only violates market rules, but also damages the interests of investors and the fairness of the market. The exposure of Coinsquare Exchange forcing employees to participate in this illegal activity has undoubtedly dealt a serious blow to its reputation and credibility.

First, let's take a look at the specific process of the Coinsquare Exchange incident. According to people familiar with the matter, the senior management of the exchange issued instructions requiring employees to use robot accounts to trade and artificially create trading volume, thereby misleading the market and investors. This practice not only violates the internal rules and regulations of the exchange, but also violates the basic principles of the digital currency market. When choosing an exchange, investors often consider its trading volume and liquidity. If these data are manipulated artificially, it will lead to a crisis of market trust and affect the healthy development of the entire industry.

Secondly, the possible impact of this incident on the digital currency market cannot be ignored. As an emerging financial field, the digital currency market has been striving to establish a fair, transparent and standardized trading environment. However, the existence and behavior of some illegal exchanges have cast a shadow on the entire market. Investors' trust in the market will be seriously challenged. In the long run, such misconduct may lead to the withdrawal of investors and market instability, and even trigger the intervention and rectification of regulatory authorities.

In addition, the exposure of the Coinsquare exchange has also triggered discussions on the regulation of the digital currency market. Regulators should strengthen supervision and management of exchanges, establish stricter systems and rules, and prevent similar incidents from happening again. Only in a fair, transparent and standardized market environment can the digital currency industry continue to develop healthily and attract more investors and funds to participate.

In general, the exposure of the Coinsquare exchange reveals some problems and risks in the digital currency market. As investors, we should remain vigilant, choose regular and reliable exchanges for trading, and not blindly pursue high trading volume and profits. Only in a fair, transparent and regulated market environment can we truly enjoy the opportunities and benefits brought by the digital currency market. I hope that through the sharing of this article, more people will pay attention to and think about the digital currency market, and jointly promote the healthy development and progress of the industry.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Motherboard, a technology website under the foreign media Vice, recently reported that Canada's Coinsquare is suspected of using automatic trading software to fabricate false trading volume. Founded in 2014, Coinsquare is Canada's earliest cryptocurrency trading platform. It currently has more than 100,000 users and reported an average daily trading volume of 10 million US dollars. 

Motherboard reporters obtained emails, Slack messages and other documentary evidence showing that Coinsquare Exchange CEO Cole Diamond had ordered employees to control multiple fake accounts in 2018 and 2019, and to buy and sell cryptocurrencies between these accounts to artificially increase trading volume. 

The leaked documents also stated that Coinsquare employees were clearly uncomfortable with "this arrangement." As reporter Joseph Cox pointed out: 

Several leaked documents specifically show that Coinsquare CEO Cole Diamond instructed internal company personnel to conduct trading volume brushing, and company employees were dissatisfied with this practice. These documents stated that Coinsquare was suspected of fabricating trading volume out of thin air at least from 2018 to 2019. 

According to the Ontario Securities Act, "wash trading" is illegal, so such behavior will "result in misleading results or artificially manipulated prices in securities and derivatives trading activities." As of press time, Coinsquare has not responded to requests for comment.

Blockchain Transparency
Institute (BTI) released a market detection report in September last year, pointing out that Kraken and Coinbase are the cryptocurrency exchanges with the lowest wash trading volume, which is a rare "clear stream" in the industry. The report pointed out that since the beginning of 2019, wash trading among the top 40 exchanges in the world has decreased by 35.7%. After sharing our data report, many exchanges have strengthened their mechanisms for detecting wash trading and related countermeasures.

Earlier, asset management agency Bitwise published survey data pointing out that 95% of the world's Bitcoin trading data was "fabricated out of thin air by unregulated exchanges." Analysis shows that among the 81 cryptocurrency exchanges surveyed, 71 of them had "almost completely fake" trading volumes, essentially engaging in "fake sales and repurchases" and "wash trading" to influence market conditions and artificially create a false boom in cryptocurrency.