NFT Wash Trading Records a 59% Decline in the Last 6 Months

Wash trading involves creating artificial trades that are designed to deceive the market. The goal of wash trading is usually to make more money than would be possible in a legitimate trade, and it can also be used to manipulate the price of an asset.

At its peak in January 2022, more than 80% of NFT trading volume was wash trading. This is a huge problem, as it means that traders cannot trust the data they receive from exchanges and platforms. According to BanklessTimes.com, wash trading in the NFT space has declined by 59% over the past six months, but it is still a significant issue that needs to be addressed.

Speaking on the data, the CEO of BanklessTimes, Jonathan Merry, said “NFT wash trading has made life tough for data analysts and market makers. Not only does it make it hard to gauge the actual price of an asset, but it also tricks people into thinking they are making profitable trades when in reality they are just buying and selling a worthless asset.”