How wash trading is being used to artificially inflate NFT prices


  • Internet
  • Thursday, 10 Feb 2022

It is likely that wash trading is commonplace in the NFT world, as it remains unregulated. — AFP Relaxnews

NFT technology continues to make headlines by enabling the monetisation of original digital creations. However, a new report reveals that the crypto-art craze is not always a natural phenomenon. Some Internet users are inflating prices by buying and selling their own non-fungible tokens – a practice known as wash trading.

This process involves creating the illusion of an imaginary demand for a cryptocurrency, or in this case NFTs, by artificially inflating its trading volume. Wash trading is often organised by large traders who have the ability to influence the market. But, in the world of crypto-art, this technique is implemented by a small group of Internet users who are themselves taking on the roles of buyer and seller.

Unlock 30% Savings on Ad-Free Access Now!

Monthly Plan

RM13.90/month
RM9.73 only

Billed as RM9.73 for the 1st month then RM13.90 thereafters.

Annual Plan

RM12.33/month
RM8.63/month

Billed as RM103.60 for the 1st year then RM148 thereafters.

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
NFTs

Others Also Read


Want to listen to full audio?

Unlock unlimited access to enjoy personalise features on the TheStar.com.my

Already a member? Log In