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Over 20,000 Crypto Tokens Manipulated via Decentralized Exchange Wash Trading, Says Solidus Labs

According to Solidus Labs, a market surveillance firm, over 20,000 crypto tokens have been subject to wash trading on decentralized exchanges (DEX) in the last three years. The firm's 2023 Crypto Market Manipulation Report found that almost 70% of a sample of 30,000 Ethereum-based DEX liquidity pools had executed wash trades since September 2020, amounting to around $2 billion worth of crypto.

Wash trading is a form of market manipulation where an entity buys and sells the same asset to give the false impression of market activity. Solidus argued that market manipulators have an easier time executing wash trades in crypto due to the fragmented liquidity across a variety of exchanges.

Ethereum Ethereum $3,643.91
-1.59%
DEX
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