Decentralized Crypto Exchange imToken DEX is Suspected of Data Deceits
Crypto wallet Bitpie released an article revealed that 99% volume of the daily active users and trading in imToken DEX were fake. Bitpie listed data about a series of small ETH transactions of 1, 0.2 or 0.3.
According to Bitpie’s article, before August 18, few users in imToken DEX, but after August 18, data of user traffic surged rapidly. At the same time, imToken carried out a lot of publicity reports on its surge in trading volume and active user traffic. imToken DEX claims a 424% surge in its user traffic and ranked first in the ETH DEX transaction.
Wen Hao, CEO and founder of Bitpie explicit about his judgment of data deceits.
“0.35 ETH from an address, 0.1 ETH was transacted in imToken after an hour, or 0.2 ETH was transacted in imToken the next day and 0.02 in a few days. Before it played the trick, dozens daily user traffic are, but the next day there are more than a thousand, and all from the same address with small amount like 0.x, 0.3, 0.4 ETH.”
However, Ben He, founder of imToken, made a statement in Wechat moments.
“Tokenlon officially launched less than a month, but topping first of ETH DEX. However, our trading volume is less than one-thousandth of that of traditional exchanges. Running DEX is the most difficult path, but the path we choose determines who we are. How could a brambling know a swan’s lofty ambition?”
One month ago, the built-in 0x-powered Tokenlon of imToken was officially upgraded to an independent de-centralized exchange (DEX).
ImToken said that there are nearly 10 million users of imToken’s equipment at present, and Tokenlon, as a new DEX, has more than 30 million dollars in transaction volume during Beta trial operation (at present, only 40 million dollars in transaction volume per week in ETH’s DEX) with a weekly retention rate of more than 70%.
In fact, in recent years, with the rise of smart contracts and the development of blockchain technology, de-centralized exchange (DEX) has gradually emerged. However, there are varied opinions about DEX’s future. For DEX, user volume and activity are not significant. CEX and DEX, each with its market. Compared with CEX, DEX is more private and secure for large transactions. DEX should aim for low-frequency large-scale transactions as a supplement for CEX.