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
IPO
Initial Public Offering (IPO) refers to the process where a public company offers newly issued shares to the public and as a result raise capital from public investors.
Buy Wall
Anomalously large buy order(s) at a single price point that reflects as a "wall" in the order book.
Proof of Work (PoW)
A consensus algorithm in which a block is validated via mathematical hashing
Market Taker
Participant of the market who buys and sells from currently existing orders
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