Report: Wash Trading Rampant in Decentralized Crypto Markets, Distorting Billions in Volume

Token deployers and liquidity providers wash-traded over $2 billion worth of crypto on Ethereum-based DEXs since 2020, per a report by Solidus Labs.
The report claims nearly 70% of 30,000 sampled Ethereum DEX liquidity pools executed wash trades, affecting over 20,000 tokens.
Solidus argues wash trading is easier in crypto due to fragmented liquidity and smaller markets.
The report states wash trading must be prevented for crypto and DeFi to flourish amid growing regulation.
In 2022, a study suggested over 70% of unregulated exchange volumes were wash trades impacting exchange rankings and prices.

cointelegraph.com

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