Wednesday, March 29, 2023
HomeOpenseaNFT wash trade accounts for 6.5% of daily sales volume on OpenSea

NFT wash trade accounts for 6.5% of daily sales volume on OpenSea

Wash trades for dead NFT collections accounted for 6.5% of the total. daily sales Yesterday morning’s OpenSea volume.Purchase a single NFT from crop collection was traded at 409 Ethereum Worth about $648,000.

of transaction fee The purchase was a whopping 10 ETH estimated at around $16,000. Nearly every purchase in the NFT Collection is small numbers The number of accounts that own only a small number of NFTs apart from this collection.

Wash trading is a very common feature in the NFT market, with some reports suggesting that during the peak of the NFT bull market, total sales In fact, it was wash trading.

read more: The $500 million CryptoPunk sale was just a wash trading.

However, exchanges much smaller than OpenSea are also a large source of wash trading, such as LooksRare and X2Y2.

NFTs wash traded yesterday are now eligible for an offer of 0.006 ETH (around $10). As traders become more and more familiar with this type of scam, trying to cover up highly visible wash trades among a handful of sales (which themselves look suspicious) is a great way to revive the project. It may not be the ideal method.

Wash trading could be crypto’s next big problem

According to December report According to the U.S. National Bureau of Economic Research, illegal wash trades can account for over 70% of the average trading volume on unregulated exchanges.

“Anomalous first significant digit distributions, size rounding, and trade tail distributions on unregulated exchanges are prevalent manipulations that are unlikely to be caused by strategy or exchange heterogeneity. It shows that there is,” said the study.

Shortly after the report was published, billionaire entrepreneur Mark Cuban also weighed in on the problem of wash trading, predicting it could be the next major problem facing the cryptocurrency industry. bottom.

Speaking in early January, Cuban said street“I think the next possible implosion will be the discovery and removal of wash trades on central exchanges.”

Cuban claimed that the token has tens of millions of dollars worth of trading that is “barely underutilized.” Cuban suggested that converting these types of assets into cash may not be so easy.

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