NFTs and blockchain technology promise transparency but little do most know, there is still some suspicious trading activity going on. New data indicates a 126% increase in NFT wash trading in February 2023 compared to the previous month of January. This means that people are taking advantage of the system and engaging in shady practices to manipulate prices and mislead potential buyers into buying these digital assets.<blockquote><a href="https://nftandgamefi.com/2023/03/20/types-of-nfts/" rel="noopener noreferrer nofollow">Physical, phygital and other types of NFTs: short overview</a></blockquote>February marked an astonishing milestone <a href="https://nftandgamefi.com/2022/05/06/best-nft-marketplaces/" rel="noopener noreferrer nofollow">for the NFT marketplaces</a>, as trading volume rocketed to $1.89 billion. This recovery signaled a much-needed positive sign for the industry after it had been struggling in 2022. However, the top six non fungible tokens (NFT) marketplaces have witnessed a continuous rise in wash trading for four consecutive months, amounting to an overall volume of $580 million.Magic Eden, OpenSea, Blur, X2Y2, CryptoPunks, and LooksRare were the six aforementioned marketplaces where significant volumes of wash trading activities were identified. The most significant contributors to February’s wash trading volume were X2Y2, Blur, and LooksRare, respectively at $280 million (49.7%), $150 million (27.7%), and $80 million (15.1%). This is not a list that should be celebrated as wash trading is a sign of manipulation in the NFT market, thus, could lead to distrust for the entire industry.According to CoinGecko’s latest report, NFT wash trading comprises an astounding 23.4% of the unadjusted trade volume across six major marketplaces in the industry. This report shows that data should be interpreted correctly. Just because the total trade volume is up it doesn’t necessarily mean that it’s all legitimate. It is important to distinguish the difference between real versus fake trading activity and understand that wash trading could be used as a tactic to deceive potential buyers.*Read the full article: <a href="https://nftandgamefi.com/2023/03/27/nft-wash-trading-increases/" rel="noopener noreferrer nofollow">NFT Wash Trading Increases By 126% In February: Data</a>

NFT Wash Trading Increases By 126% In February: Data

NFTandGameFi

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