Bobby Lee on exchange volume deception in China

On the CoinSummit conference Bobby Lee recently spoke about the rampant volume deception that is going on in China. Watch his talk here:

http://ift.tt/1kdUv9x

I was wondering if Bobby Lee is correct about how the average Chinese exchange operates, and his observations do seem to be valid explanations of odd market reactions in China, how can you still make any kind of usable market prediction considering all that fraud. To name a few, he lists, exchanges padding volumes with zeros, selling to itself, repeating past sales to hide low activity and phantom liquidity (via fake buy and sell orders that cause flash crashes when someone’s market order falls right through them), add to that zero fees and you've got a rather explosive mix, that's more destructive than helpful to the market.

If you consider this, then I'm having a real hard time seeing what is supposed to be so bad about the news that China is banning exchanges. If what Bobby says is even a little true, then the ban can't come soon enough in my opinion, in the meantime it might be a good idea for the market to completely disregard any market prices from China, because it looks like they do not have even remotely the market share or volume that everyone seems to believe they have and therefore should not have the same impact on marketprice either.

submitted by MrGoogz

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