Wash Trading
Faking activity by repeatedly buying and selling the same asset to inflate volume or price.
A trader, or a bot, sells to themselves through two accounts, over and over. No real position changes hands, but the tape shows volume and motion.
The goal is deception: making a token look liquid and in demand to lure real buyers, or pushing an NFT's price to fake a market. It's illegal in regulated markets and rampant in unregulated crypto. Inflated exchange and NFT volume figures are often part wash trading.
Related terms
The total value of an asset bought and sold over a period, usually measured across 24 hours.
Pump and DumpA scheme that inflates a coin's price with coordinated hype, then sells into the buying for profit.
Exit LiquidityBuyers who purchase at high prices, letting earlier insiders sell out at a profit.
NFT (Non-Fungible Token)A blockchain token that represents ownership of a unique item, where no two units are interchangeable.