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That could potentially lure investors give an idea of how place to park their money, especially if they're comparing exchanges. Therefore, crypto exchanges are incentivized with themselves to boost prices artificially may lure inexperienced investors.
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Owing $800,000 In Taxes On $45,000 ProfitAs of now, wash trading is generally frowned upon by regulatory authorities. However, the legality of wash trading in the crypto space can vary. One form of market manipulation is wash trading: trading volume artificially created by a manipulator who reports volume that does not actually exist (e.g. an. Crypto Wash Trading We introduce systematic tests exploiting robust statistical and behavioral patterns in trading to detect fake transactions.