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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.

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Related Terms

Buy Wall
Anomalously large buy order(s) at a single price point that reflects as a "wall" in the order book.
Ledger
A record of financial transactions that cannot be changed, only appended with new transactions.
Pre-sale
A typically exclusive token sale event preceding a public ICO
Securities and Exchange Commission (SEC)
U.S. Securities and Exchange Commission, an independant agency of the US Federal government which oversees federal securities laws, proposing securities rules, and regulating the securities industry.
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