Mark Cuban Believes that Wash Trading will Cause Next Crypto Implosion.
As per the Dallas Mavericks owner and crypto investor Mark Cuban, wash trading may result as the next crypto "implosion" this year. The billionaire with a net worth of $4.8 billion, according to Forbes, also predicted that 2023 would be full of cryptocurrency controversies like the multiple scandals that has shaken 2022 during an interview with The Street on January 5. However, kraken copy trading Polygon investor Mark Cuban clarified that he was merely speculating and said, "I don’t have any specifics to offer to support my guess." Cuban, the co-owner of 2929 Entertainment and one of the main "shark" investors on the ABC reality television series Shark Tank, stated that he thinks the next major development in the sector would be "the discovery and removal of wash copy trades crypto on central exchanges." He said:
"I don’t see how they can be that liquid," He further added: "There are supposedly tens of millions of dollars in trades and liquidity for tokens that have very little utilization."
What is Wash Trading?
Wash trading is the act of reselling and repurchasing tokens. Some cryptocurrency exchanges often engage in this activity to inflate the volume of activity on their site and draw in new users. Due to the intense market competition and the ongoing growth of new platforms, wash trading includes the exchange of digital assets on trading platforms, such as fungible or non-fungible tokens. The trader is free to create numerous accounts and use them for how to copy crypto traders this purpose. The cost of the asset would go up as a result. The main goal is to fool other traders into believing that there is a strong demand for the asset. According to a study conducted by the blockchain analytics company Dune in December last year, nearly 60% of the year’s non-fungible token (NFT) trade volumes were made up of wash transactions. Also, how to copy trade crypto according to a Forbes investigation, over 51% of the estimated Bitcoin trade volume is "bogus" and fake.