When LooksRare started operating in January, it came with the promise of challenging OpenSea’s dominance in the NFT space. But three months down the line, it seemed to have developed a reputation for wash trading.
According to CryptoSlam and cited by Bloomberg, about $18 billion or 95% of trading volume on the platform is wash trading.
Wash trading is an act where a trader sells an asset belonging to them to another wallet controlled by them. It is usually an attempt to inflate the price of the asset and also give the impression of demand. But that’s not the only reason why LooksRare traders are doing it.
LooksRare incentives indirectly promote wash trading
The prevalence of wash trading on the marketplace is due to the incentives attached to active trading on the platform. While the concept of wash trading is frowned upon by many, there are no regulations that prevent it.
But even if the intention of the wash traders is to earn tokens and not pump prices, there’s no doubt that t
We współpracy z: https://cryptoslate.com/wash-trading-accounts-for-95-of-looksrare-trading-volume/
