Wash trading on low ranked unregulated exchanges is highly incentived by rank improvement and attraction of traders that place a premium on liquidity. WT comprises a significant portion of the industry activity, dominates.
Excellent paper by Lin William Cong and team at Cornell.
XRP is the favorite to spook wash trading, but the arbitrage bots collapse the effect in less than 1 week. Likely due to low final settlement chain fees & large investor base.
Application of Benford's Law can catch wash trading exchanges:
PUMP IT! If you wash trade you can get your exchange ranked higher, more users, more fees!
$1 Trillion per month of wash trading, wow! Be careful out there, only use regulated exchanges!!!
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.