What is wash trading in cryptocurrency?

Wash trading is a form of market manipulation where an investor simultaneously buys and sells the same asset to create the illusion of market activity, artificially inflating the asset's trading volume and price.

Why is wash trading illegal?

Wash trading is illegal because it misleads investors by creating false market conditions, such as inflated liquidity or manipulated prices. It violates market integrity and can lead to fraudulent behavior and mispricing of assets.

How can I identify wash trading?

Wash trading can often be identified by unusually high trading volumes or rapid transactions occurring within short periods, with no significant change in the asset’s price. If a market shows consistent, large trades without real price discovery, it may indicate wash trading.

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What is WASH TRADING?

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