Exposing Wash Trading In Ethereum NFT Market: $3.4B Artificial Volume
Wash trading in Ethereum NFT market: $3.4B artificial volume, 5.66% of collections affected, exploiting reward systems more profitable than price inflation.
This is a Plain English Papers summary of a research paper called Exposing NFT Wash Trading: $3.4B Artificial Volume on Ethereum Blockchain. If you like these kinds of analysis, you should join AImodels.fyi or follow me on Twitter. Overview The NFT market on the Ethereum blockchain experienced rapid growth in 2021, reaching $6 billion in monthly trade volume by January 2022. Concerns have emerged about possible wash trading, a form of market manipulation where one party repeatedly trades an NFT to artificially inflate its volume. This research examines the effects of wash trading on...