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<p class="is-style-lead">Solidus Labs research finds $2 billion in deceptive wash trading activities across Ethereum-based decentralized exchanges.&nbsp;</p> 
<p>Newly released data from Solidus Labs, a crypto trade surveillance and risk monitoring platform, indicates that a staggering $2 billion worth of crypto assets has been wash-traded on Ethereum-based decentralized exchanges (DEXs) since 2020.</p> 
<p>The report casts a spotlight on the pervasive but preventable issue of market manipulation in the world of decentralized finance (defi).</p> 
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   <p lang="en" dir="ltr">📢 Major Update! Unveiling Part Two of our Crypto Market Manipulation Report! 🚨 Our data shows a shocking $2 billion <a href="https://twitter.com/hashtag/washtrades?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#washtrades</a> on DEXs since Sept 2020. That's affecting over 20,000 tokens! 📊⚠️<br><br>👉 Full details here in our report: <a href="https://t.co/pcRvMBGfb0" target="_blank" rel="noopener noreferrer nofollow">https://t.co/pcRvMBGfb0</a></p>— Solidus Labs (@Solidus_Labs) <a href="https://twitter.com/Solidus_Labs/status/1701582244140220880?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 12, 2023</a> 
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<h2 class="wp-block-heading" id="tracing-the-pattern-wash-trades-and-manipulated-crypto-pools">Tracing the pattern: Wash trades and manipulated crypto pools</h2> 
<p>Wash trade is a malicious tactic where traders place both buy and sell orders with themselves to artificially influence the market. Of roughly 30,000 DEX liquidity pools studied, Solidus Labs identified a striking 67% where wash trading had been conducted. In these manipulated pools, wash trading comprised 16% of the total trade volume.&nbsp;</p> 
<p> You might also like: <a href="https://crypto.news/europol-slams-defi-over-high-criminal-activity/" rel="noopener noreferrer nofollow"> Europol slams DeFi over high criminal activity </a> </p> 
<p>The <a href="https://www.businesswire.com/news/home/20230912351705/en/Solidus-Labs-Uncovers-2-Billion-Worth-of-Wash-Trades-on-Decentralized-Exchanges" target="_blank" rel="noopener noreferrer nofollow">report</a> also shows how wash trading was used by scammers to lure investors into rug pull projects.</p> 
<p>One particularly glaring example involved a meme token dubbed “SHIBAFARM.” The token was launched in mid-2021 when the meme coin hype was off the charts. As Shiba Inu (<a href="https://crypto.news/price/shiba-inu/" rel="noopener noreferrer nofollow">SHIB</a>) and Dogecoin (<a href="https://crypto.news/price/dogecoin/" rel="noopener noreferrer nofollow">DOGE</a>) were also soaring at that time, the project used FOMO to attract investors.&nbsp;</p> 
<p>Solidus Labs found that a network of related wallets artificially inflated the token’s value, luring unsuspecting investors before suddenly pulling the plug, netting a profit of over $2 million.</p> 
<p>The findings of the report are especially concerning given the growing prominence of defi, which often operates in less regulated spaces than traditional financial markets.&nbsp;</p> 
<p> Read more: <a href="https://crypto.news/banana-guns-redemption-plan-after-banana-token-crash/" rel="noopener noreferrer nofollow"> Banana Gun’s redemption plan after BANANA token crash </a> </p>

$2b of crypto assets wash traded on decentralized exchanges, report shows

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