Absolutely, trading volumes for crypto can definitely be fake – this is no secret. Many smaller exchanges or unregulated exchanges attempt to inflate their trading volume to appear more active and legitimate than they are. Often, this is done to get users' interest, raise the rank of a token, or qualify for CMC listing.

A popular tactic involves wash trading, where the same entity buys and sells the same asset over and over. Another type of cybercrime involving placing fake orders to mislead traders and canceling them before execution. Some exchanges use their own bots to create activity and manipulate price levels.

According to Bitwise, in 2019, 95% of Bitcoin trading volume on Coinmarketcap is most likely fake or non-economic in nature. Even today, worries linger especially small, offshore platforms.

Fake trading volume can create a false impression and mislead stakeholders into believing that a certain token or a place to trade is highly popular or liquid than it actually is.  This will cause to have a sense of false security that will make bad investments.

To avoid this trap, use trusted exchanges like Coinbase or Kraken, check volume data with less opaque sources like Messari, and CoinGecko's "real volume" indicators. Be wary of exchanges that have high volumes but little real user engagement.

To sum up, fake trading volume is indeed true and often a component of extensive scams  or manipulations. When choosing a trading venue, always do your research and look for transparency and reputation.

Yes, crypto trading volumes can be faked, and in some cases, it's part of a scam or market manipulation. While many reputable exchanges report accurate volumes, others—especially smaller or unregulated ones—inflate their trading numbers to appear more active and trustworthy than they really are.
🔍 How Is Fake Volume Created?

    Wash Trading

        An entity (or bot) buys and sells the same asset repeatedly to create the illusion of high demand.

        This doesn't involve any real transfer of value, just artificial activity.

    Spoofing

        Fake buy/sell orders are placed to manipulate price perception, then canceled before being executed.

        This tricks traders into thinking there's strong support/resistance at certain prices.

    Internal Market Making

        Some exchanges trade with themselves (or affiliated bots) to simulate liquidity.

💣 Why Do They Fake It?

    To attract new users/investors

    To get listed on data aggregators like CoinMarketCap or CoinGecko

    To justify inflated token valuations

    To manipulate token rankings on exchanges or listing platforms

🧾 Real-World Examples

    In 2019, Bitwise reported to the SEC that 95% of Bitcoin trading volume on CoinMarketCap was likely fake or non-economic.

    The Wall Street Journal and Forbes have reported that many offshore exchanges inflate volume.

    Even some decentralized exchanges (DEXs) have been caught using bots to simulate activity.

🛡� How to Spot (and Avoid) Fake Volume
Signal   What It Might Mean
📉 Very low spread but huge volume   May be wash trading
⏱️ Repetitive trading patterns in short intervals   Suggests bots faking trades
🧊 No actual liquidity when placing a trade   Volume is fake; can't fill your order
🌐 Exchange is unknown, unregulated, or offshore   Higher risk of manipulation
❌ No real user base but ranked highly   Likely artificial volume
✅ What You Can Do

    Use trusted exchanges (Coinbase, Kraken, Binance, etc.)

    Check volume via real-volume-adjusted trackers like:

        Messari Real Volume

        Nomics (historically offered transparent volume tracking)

    Research an exchange's history and regulatory compliance