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 <p>Price manipulation via <a rel="noopener noreferrer nofollow" title="wash trading" href="https://thebittimes.com/tag/wash-trading.html">wash trading</a> is a common strategy that entities use to earn profits. Usually, entities buy and sell the same asset simultaneously to create a false impression of market activity. Nevertheless, the trade reflected no change in actual ownership.&nbsp;Liquidity is fragmented in <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>, and as a result, smaller markets are easier to manipulate via large orders. Solidus Labs recently revealed that the price of billions of dollars worth of <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> has been manipulated over the past three years. As far as specific numbers are concerned, the report revealed, </p> 
 <p>“<strong>Since September 2020, liquidity providers (LPs) on Ethereum-based decentralized exchanges (DEXs) have wash-traded at least $2 billion worth of <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency, manipulating the prices and volumes of more than 20,000 tokens</strong>.”</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 #washtrades on DEXs since Sept 2020. That's affecting over 20,000 tokens! 📊⚠️<br><br>👉 Full details here in our report: https://t.co/pcRvMBGfb0</p> 
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    </div> — Solidus Labs (@Solidus_Labs) September 12, 2023 
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 <p><strong>Also Read: Banana Gun’s&nbsp;Crypto Crashes by 99.7%: ChatGPT Finds Contract Bug</strong></p> 
 <h2 class="wp-block-heading" id="h-wash-trading-must-be-prevented-for-markets-to-thrive">Wash Trading Must be Prevented for Markets to Thrive</h2> 
 <p>A report by the National Bureau of Economic Research [NBER] in 2022 revealed that 70% of unregulated exchange transactions are <a rel="noopener noreferrer nofollow" title="wash trading" href="https://thebittimes.com/tag/wash-trading.html">wash trading</a>. In fact, even in the NFT market, <a rel="noopener noreferrer nofollow" title="wash trading" href="https://thebittimes.com/tag/wash-trading.html">wash trading</a> is a common occurrence. Over the past month, the Ethereum blockchain has settled $216 million via NFT sales. However, data from CryptoSlam revealed that $125.9 million was wash traded. On Solana, the proportion was comparatively low, while on Polygon, the <a rel="noopener noreferrer nofollow" title="wash trading" href="https://thebittimes.com/tag/wash-trading.html">wash trading</a> figure was significantly high.</p> 
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  <img decoding="async" width="1024" height="372" src="https://cdn.thebittimes.com/images/2023/09/13/f86fb45d7621693b1a3b99f3085dd0f8.webp" alt class="wp-image-111613" srcset="https://cdn.thebittimes.com/images/2023/09/13/f86fb45d7621693b1a3b99f3085dd0f8.webp 1024w, https://cdn.thebittimes.com/images/2023/09/13/f86fb45d7621693b1a3b99f3085dd0f8.webp 300w, https://cdn.thebittimes.com/images/2023/09/13/f86fb45d7621693b1a3b99f3085dd0f8.webp 768w, https://cdn.thebittimes.com/images/2023/09/13/f86fb45d7621693b1a3b99f3085dd0f8.webp 380w, https://cdn.thebittimes.com/images/2023/09/13/f86fb45d7621693b1a3b99f3085dd0f8.webp 550w, https://cdn.thebittimes.com/images/2023/09/13/f86fb45d7621693b1a3b99f3085dd0f8.webp 800w, https://cdn.thebittimes.com/images/2023/09/13/f86fb45d7621693b1a3b99f3085dd0f8.webp 1160w, https://cdn.thebittimes.com/images/2023/09/13/f86fb45d7621693b1a3b99f3085dd0f8.webp 1416w" sizes="(max-width: 1024px) 100vw, 1024px"> 
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    Source: CryptoSlam 
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 <p><strong>Also Read: This is Bitcoin’s Strongest Recovery Excl. ‘ETF-Rally’ Since July 13</strong></p> 
 <p>Arguably, fair markets are crucial for sustainable growth. Nevertheless, there seems to be a lack of clarity on certain conditions. The report pointed out that there are still question marks regarding who is responsible for <a rel="noopener noreferrer nofollow" title="wash trading" href="https://thebittimes.com/tag/wash-trading.html">wash trading</a> prevention and detection. Even so, DEX-based <a rel="noopener noreferrer nofollow" title="wash trading" href="https://thebittimes.com/tag/wash-trading.html">wash trading</a> is detectable, and, in many cases even preventable. Solidus’ report asserted,</p> 
 <p>“<strong>Wash trading may be a new problem for DEXs, but, much like&nbsp;insider trading, it’s one with a proven solution.</strong>“</p> 
 <p><strong>Also Read: Binance: SEC’s Requests Are ‘Burdensome’</strong></p> 
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<div class="cs-entry__tags"> 
 <ul> 
  <li>crypto</li> 
  <li>nft</li> 
  <li>wash trading</li> 
 </ul> 
</div> 
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/over-20-000-crypto-tokens-have-faced-wash-trading-since-2020-tbt62514.html">https://thebittimes.com/over-20-000-crypto-tokens-have-faced-wash-trading-since-2020-tbt62514.html</a></p>

Over 20,000 Crypto Tokens Have Faced Wash Trading Since 2020

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