Interesting fact: Most NFT trading volume is fictitious!

 

It turns out that most of the trading in non-fungible tokens (NFT) was carried out by the so-called fictitious trading (Wash Trading). The high trading volume of each NFT has encouraged investors to buy these non-fungible tokens.

 

>> What is Wash Trading? <<

It was found that the NFT market was using high trading volume as a way to get investors to buy various NFTs through a fake trading method.

 

▪ Wash Trading is a way to manipulate the crypto space where artists buy and sell their own art on the market, thereby increasing the number of transactions and the minimum price, which makes it more likely that investors will buy their art due to the large number of transactions .

 

It is believed that this strategy will fool investors who wanted to capitalize on these non-fungible digital assets.

 

 

When investors see that an NFT has a lot of deals, they want to buy it in the hope that more people will buy it and the floor price will rise, which will give them a huge return on their money.

 

Sometimes these traders or NFT producers open many accounts on the site and start trading these NFTs with their own money, buying and selling at different prices to increase sales and trading volumes. As investors seek faster profits and returns, their tendency to FOMO (fear of missing out) and caution is waning.

 

This approach generated a lot of interest in 2019 as the creators of the NFT saw it as a dangerous but ingenious way to gain momentum and make huge profits.

 

It is estimated that most of this fictitious trading took place on the Ethereum network, and that these traders sometimes lost money due to excessive gas costs.

 

However, this did not prevent the use of the strategy, it was quickly implemented on the Solana blockchain, where NFTs were gaining momentum and exceeded the trading volume on the Ethereum network.

 

LuxRay is one of the multi-platform NFT platforms whose activities and transactions are fueled by fictitious trading.