Highlights about crypto wash trading

Happy weekend Tronics
Trust we all doing good?

Today I will share with us
Important information about Wash trading in crypto.

So I will need your contribution on what you all think of This topic and. Could share if you have experience any forms of wash trading so far in your crypto experience.

What is crypto wash trading?

Wash trading is a form of market manipulation in which an individual or entity buys and sells the same asset, or a closely related asset, multiple times in order to create the illusion of increased trading activity and artificially inflate the asset’s price.

In the crypto market, wash trading is often done by using multiple accounts to trade between each other.

Merits of crypto wash trading

There are a few potential merits to crypto wash trading. For example, it can be used to create the illusion of liquidity in a market, which can make it more attractive to investors.

Wash trading can be used to artificially inflate the price of an asset, which can benefit traders who are already holding that asset.

Demerits of crypto wash trading

There are also a number of demerits to crypto wash trading. For example, it can mislead investors about the true value of an asset, which can lead to them making poor investment decisions.

Wash trading can be used to artificially suppress the price of an asset, which can harm investors who are holding that asset.

Is wash trading illegal in crypto?

The legality of wash trading in crypto varies from country to country.

In the United States, wash trading is illegal in most asset classes, including stocks, bonds, and commodities.

The legality of wash trading in crypto is still a grey area. Some regulators have taken the stance that wash trading is illegal in crypto, while others have not yet made a clear ruling.

Is wash trading allowed in crypto?

Whether or not wash trading is allowed in crypto also varies from exchange to exchange.

Some exchanges have policies that explicitly prohibit wash trading, while others do not.

It is important to check the policies of any exchange you use to trade crypto to make sure that wash trading is not allowed.

Wash trading is a risky and potentially illegal practice that should be avoided by crypto traders.

If you are considering using wash trading, it is important to weigh the potential risks and benefits carefully.

So Do you support Wash trading in crypto?


Anything that will lead to my bankruptcy is frowned upon.

I did a pump and dump scheme once and it was never a sight to behold.

I joined a group called “wallstreetbet”, they promised of a token they were going to pump at exactly 5.00pm that day.

We were asked to make our $btc ready since the token is only paired with $btc on binance and be ready for the name of that token at the said time.

I did everything ask of me and was ready to join in on the pump as the evidence shown by their previous pump and dump scheme has proven to 100% successful, those who joined made a minimum of 700% on their investments.

This was cool chop and i was not ready to miss this opportunity.

The time came, i bought the token the exact time the name was mentioned.

After buying it i realised i had made a very big mistake.

Insiders had already pump that token to the limit and were looking for people like us to use as exit liquidity.

The coin started coming down like crazy, so i sold fast but lost 50% of my investment.

I stuck around to see how these scammers work.
The next day they brought another token. This time my eyes was wide open.

I checked the trading chart of that token and realized same strategy, they have already pumped it and looking for people like us to dump on.

Once bitten twice shy. So anything that will lead me to tears, i stay far away from it.

Nothing good can ever come out from wash trading.


It quite sad that people use the ignorance of most people for their own profit.

I strongly kick against was trading because that is a clear Ponzi scheme and market manipulation just to favor insiders.

I suggest regulatory bodies should be put in place to checkmate wash trading in the crypto space.


Oh such a not good experience,. I believe some of us a victim… Once or twice

Maybe similar experience.
To me I could say maybe the wash
Traders could be useful to ACHIEVE
Some trading volume.

But like I will feel, DONT TRUST

From your shared experiences
I do feel wash trading could be a
Selfish trading tool that can be used
By insiders as a form of insider trading.

The main purpose could lead to.
Attracting Investors… That they may Rugpull ,
Also, do you know or think that
Wash trading can be use in trading Competition
Just to gain fake volumes.

It’s can be so disappointing for a newbie
As a victim of wash trading or similar experience
You had

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I agree with you. Wash trading is a form of market manipulation that can artificially inflate prices and mislead investors. It is particularly prevalent in the crypto space, where there is less regulation than in traditional financial markets.

Regulatory bodies can play a key role in detecting and preventing wash trading. They can do this by requiring exchanges to collect and report trading data, and by conducting regular audits. They can also impose penalties on exchanges and individuals who engage in wash trading.

There are also a number of technological solutions that can be used to detect wash trading. These include blockchain analytics tools that can track the flow of funds and identify suspicious trading patterns.

By taking steps to regulate wash trading, we can help to protect investors and ensure that the crypto market is fair and transparent.


In crypto everyone is looking for a means to hit the big bag and run,…am not a fan of wash trading, they won’t see a common man like me as their exit liquidity :joy:
But if by chance am holding the token for long and they mistakenly pump it, I will follow them cash out :joy:
Isn’t God wonderful?

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Lols, the last line got me
What me what liquidity can’t do… doesn’t exist.

I totally understand your point… Don’t get to attach to to game.

To a greater extent.
I may not support Wash trading… I could likely it to be insider trading.

At the end the innocent trader get drained or even the whales if you not smart enough… can get drained too

Here is my favourite.

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Before I joined crypto, the number rule I gave myself is:

trust no one

And this rule has saved me from becoming a victim to a lot of vices happening in this industry.

I can remember how i use to find myself in so many pump and dump tg channels but my suspicion on them always makes me not to take them serious because I always tell myself that if I should succeed with such pump and dump scheme today, tomorrow I may turn to an exit liquidity.

So my advise to anyone considering wash trading is to consider CEX listing (because there is always a bit price increase at any of the initial CEX listing) instead of wash trading.

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thanks for this bro, I know of this but didn’t know it was called wash trading. Learned one thing today.

This is common everywhere especially with the use of bots.

Is there any way to check these, I am asking this because most Cexs required projects to have huge trading volumes and others. But organic trading volume. So are they able to check and remove these wash trading or they are allowed?

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Using multiple accounts is the most intricate part of wash trading, The market manipulation is second to none.

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GM buddy.
Thanks for kind words
We learn every day.

Some of these Crypto experience could be daily
But we might not know how best they are termed or called.

As we know the use of bots in trading has gone
Wild, guess what highly sophisticated trading bots
They could be deployed for this wash trading
In massive performance,

Yes, they are some ways to check for components of wash trading

Don’t be surprised, most of the huge trading volume of your favourite or trending coin… Could be effects of wash trading… Just to meet up
With listing or other requirements

I know of the 2 possible ways to checkmate wash trading in CEX. @manfred_jr

Requiring users to provide identification information makes it more difficult for traders to create multiple accounts and wash trade between them.

Monitoring trading patterns. CEXs can look for patterns that suggest wash trading, such as trades that are made at the same price or within a very narrow range.

yeah I know most of them are wash trading, you remember I said most of the things we see in crypto, 90% are fake lol

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All good we now know this information and see it useful.

All needed is for us to
Be very careful in this crypto space.


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thank you my man :pray::pray:

sure we need to be careful

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Hello Tronics,
Let get to learn about
The types of wash trading

That we can identify if the crypto space!.

Who is ready?

I am ready. Lets hear your contributions.

Alright here we go with it.

There are a few different types of wash trading, but they all involve the same basic principle of buying and selling the same security or asset multiple times in order to create the illusion of market activity.

Some of the most common types of wash trading include
The one we have experience once or twice.

Let have it

The most common one that i now about is the pump and dump schemes. Where people inflate the price of an asset by buying and selling it within a certain group of people .
Once the make their profit the take out liquidity and the assets dump on the investors.

Self-trading: This is where an individual or entity trades with themselves in order to create the illusion of market interest.

This can be done by using multiple accounts or by simply placing buy and sell orders for the same security and then cancelling them out.

This can be seen in trading Competition.

Yeah, overall, By implementing robust identification requirements and monitoring trading patterns, exchanges can mitigate the risks associated with wash trading and foster a more transparent and trustworthy trading environment for cryptocurrency markets.