Wash Trade
By CoinGecko | Updated on Mar 03, 2020
Wash trading is a way to artificially inflate the trading volume of any tradable assets on an exchange. To wash trade, a single party becomes both the buyer and seller to trade the asset back and forth at high speeds. This activity will be conflated into an exchange's regular trading volume to appear as if ther are a lot of trading activity on the market. This is ussually done either by a "market maker" to help a coin appear appealing to trader or by an exchange itself to trick traders into thinking they are trading in an active exchange.
Related Terms
Pump and Dump Scheme
A market manipulation method to drive up the price of an asset before profiting by driving it back down.
Leverage
It is an investment strategy to gain potential return of the investment by borrowing the money
Block Explorer
Application or websites which display information such as status of transactions or data contained in a block of a given public blockchain network.
Dusting Attack
A new form of malicious activity in which hackers and scammers attempt to undermine the privacy of cryptocurrency users by sending little amounts of money to their wallets.
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