{"id":16602,"date":"2024-09-02T13:17:24","date_gmt":"2024-09-02T10:17:24","guid":{"rendered":"https:\/\/forklog.com\/en\/k33-research-unveils-underreported-liquidation-volumes-on-major-cexs\/"},"modified":"2024-09-02T13:17:24","modified_gmt":"2024-09-02T10:17:24","slug":"k33-research-unveils-underreported-liquidation-volumes-on-major-cexs","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/k33-research-unveils-underreported-liquidation-volumes-on-major-cexs\/","title":{"rendered":"K33 Research Unveils Underreported Liquidation Volumes on Major CEXs"},"content":{"rendered":"<p>Data on liquidations from centralized cryptocurrency exchanges are &#8220;bogus&#8221; and significantly underrepresent actual volumes, according to senior analyst at K33 Research, Vetle Lunde. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Did you know?<\/p>\n<p>Liquidation data from exchanges are bogus and a vast underrepresentation of actual liquidation volumes in the market.<\/p>\n<p>To provide a \u201cfair trading environment\u201d (Bybit, Sep 2021) and to \u201coptimize user data stream\u201d (Binance, Apr 2021), Binance and Bybit changed their\u2026 <a href=\"https:\/\/t.co\/QeGsSVdT0a\">pic.twitter.com\/QeGsSVdT0a<\/a><\/p>\n<p>\u2014 Vetle Lunde (@VetleLunde) <a href=\"https:\/\/twitter.com\/VetleLunde\/status\/1829164203438997567?ref_src=twsrc%5Etfw\">August 29, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to his research, since 2021, Binance, OKX, and Bybit have altered their <span data-descr=\"Application Programming Interface \u2014 \u043f\u0440\u043e\u0433\u0440\u0430\u043c\u043c\u043d\u044b\u0439 \u0438\u043d\u0442\u0435\u0440\u0444\u0435\u0439\u0441 \u043f\u0440\u0438\u043b\u043e\u0436\u0435\u043d\u0438\u044f\" class=\"old_tooltip\">API<\/span> to conduct one liquidation per second instead of reporting all. Consequently, data from the past three years is understated, and Lunde believes this was done deliberately.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;It&#8217;s a PR move. Constantly being at the top of liquidation rankings did not align with the strategy of attracting clients to trade the maximum possible volume,&#8221; he wrote. <\/p>\n<\/blockquote>\n<p>Lunde noted that transparent liquidation data is the simplest way to assess risk appetite and better understand leverage ratios on exchanges. It is also a reliable source for understanding the impact of sudden volatility and how much the market has been cleansed of excessive borrowed capital.<\/p>\n<p>As an alternative metric, the analyst suggested evaluating events by the reduction in leverage, tracking changes in open interest in notional amounts relative to the previous day&#8217;s figures. <\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;While this approach simplifies comparing past leverage states with current ones, it does not account for traders opening new positions amid the turmoil,&#8221; he warned.<\/p>\n<\/blockquote>\n<p>According to <a href=\"https:\/\/www.coinglass.com\/ru\/LiquidationData\">Coinglass<\/a>, the market saw $160.57 million in liquidations over the past day.<\/p>\n<p>Earlier in May, a researcher from Privacy Scaling Explorations <a href=\"https:\/\/forklog.com\/en\/news\/expert-identifies-vulnerability-in-binances-reserve-audit-mechanism\">identified a vulnerability<\/a> in Binance&#8217;s reserve audit mechanism.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Data on liquidations from centralized cryptocurrency exchanges are &#8220;bogus&#8221; and significantly underrepresent actual volumes, according to senior analyst at K33 Research, Vetle Lunde. Did you know? Liquidation data from exchanges are bogus and a vast underrepresentation of actual liquidation volumes in the market. To provide a \u201cfair trading environment\u201d (Bybit, Sep 2021) and to \u201coptimize [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16601,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[58,744,1151,1166,1167,1291],"class_list":["post-16602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-api","tag-binance","tag-bybit","tag-centralized-exchanges-cex","tag-k33","tag-okx"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/16602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=16602"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/16602\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/16601"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=16602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=16602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=16602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}