Connect with us

Crypto News

Most NFT Trading Volume Comes From Wash Trading

Published

on

Most NFT Trading Volume Comes From Wash Trading

According to Dune, a crypto analytic firm, most NFT trading was done in a wash trading manner, leading investors to purchase these non-fungible tokens due to the high trading volume attached to each NFT.

Fake NFT Trading Volumes?

NFT marketplaces were discovered to have used the strategy of high trading volumes to entice investors into investing in various NFT artworks via a wash trading method.

Wash trading is a crypto space manipulation technique in which art creators buy and sell back their artwork into the market space to increase trading volume and floor price, luring investors to buy their arts due to high volume.

This strategy was seen to mislead investors who were looking to profit from these non-fungible digital assets.

When investors see an NFT with a high trading volume, they are enticed to invest in the hope that more investors will invest and the floor price will rise, earning them a massive return on their investment.

This trader or creator of the NFTs sometimes create multiple accounts on the platform and begin trading in these NFTs with his/her own funds, buying and selling at different prices in order to increase his sales and trading volumes. And as investors see it, their no FOMO (Fear of Missing Out)  and staying safe habits deteriorate as they rush to ape in and profit.

Wash Trading On ETH And SOL Networks

This technique, known as wash trading, gained a lot of traction in 2019 as NFT creators saw it as a risky but creative way to gain traction and earn massive returns.

Some creators go above and beyond by enticing investors with token rewards for purchasing one NFT, among other things.

This Dune firm went on to speculate that the majority of this wash trading was done on the Ethereum network, and that these traders sometimes lost their profits due to exorbitant gas fees.

However, this did not prevent this technique from being used; it soon made its way down to the Solana blockchain, where NFTs were gaining traction and outperforming ETH.

This analytics platform went on to mention some NFT Platforms that relied on wash trading to boost their activities and trades, one of which was the LooksRare platform.


Tokenhell.com produces top quality content exposure for cryptocurrency and blockchain companies and startups. We have provided brand exposure for thousands of companies to date and you can be one of them too! All of our clients appreciate our value / pricing ratio. Contact us if you have any questions: info@tokenhell.com. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.


Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto News

BitPay Announces Partnership With MoonPay – Bitcoin Magazine

Published

on

Bitcoin And Artificial Intelligence Frees Your Time - Bitcoin Magazine


BitPay and MoonPay, leading bitcoin and cryptocurrency payments infrastructure providers, have partnered “to provide BitPay users with significantly increased ways to buy cryptocurrency instantly, and at great rates.”

“BitPay’s unique marketplace experience also presents multiple rates for buyers, ensuring they receive the best possible price for their cryptocurrency purchases,” the press release states. “Additional benefits of the integration include fast delivery to any owned wallet address, as well as the ability for buyers to pay with their preferred method, including credit card, debit card, Apple Pay, Google Pay or a variety of local bank transfer methods.”


Source link

Continue Reading

Crypto News

Why Real Regulatory Change In Crypto Has Not Happened

Published

on

Why Real Regulatory Change In Crypto Has Not Happened



Legislators need to educate themselves on Web3 if they care about protecting consumers, Steven Eisenhauer, chief risk and compliance officer at Ramp, writes.


Source link

Continue Reading

Crypto News

South Korea to deploy cryptocurrency tracking system in 2023

Published

on

South Korea to deploy cryptocurrency tracking system in 2023


The Ministry of Justice in South Korea announced plans to introduce a crypto-tracking system to counter money laundering initiatives and recover funds linked to criminal activities.

The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance, according to local media outlet khgames.

While the system is slated to be deployed in the first half of 2023, the South Korean ministry shared plans to develop an independent tracking and analysis system in the second half of the year. A rough translation of the ministry’s statement reads:

“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”

The South Korean police previously established an agreement with five local crypto exchanges to cooperate in criminal investigations and ultimately create a safe trading environment for crypto investors.

Related: South Korean prosecutors request arrest warrant for Bithumb owner: Report

The South Korean Supreme Court ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage on Nov. 12, 2017.

The finalized ruling from the supreme court ordered damages ranging from as little as $6 to around $6,400 be paid to the 132 investors involved.

“The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service,” the court stated.


Source link

Continue Reading

Trending