noun
Internet Slang
wash trading
WOSH TRAY-ding · noun · informal
Fake self-dealing trades to inflate volume or price.
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Definitions
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Market manipulation where a party trades an asset with itself across wallets to fabricate volume and interest, faking demand for an NFT or token.
“That collection's volume is mostly wash trading between two wallets.”
by community
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wash trading In A Sentence
That collection's volume is mostly wash trading between two wallets.
Origin & Usage
Traditional-markets fraud term; rampant in NFTs and documented in academic studies.
People Also Ask
What is wash trading in crypto?
It's manipulation where someone trades an asset with themselves across multiple wallets to fake volume and demand, making a token or NFT look more active than it is.
Why do people wash trade NFTs?
To fabricate volume that lures in real buyers, climb marketplace rankings, or farm token rewards tied to trading activity.
Is wash trading illegal?
In traditional regulated markets it's illegal, and while enforcement in crypto is patchy, it's widely considered fraud.
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