\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n
\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n
\"\"
LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

\"\"
LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

\"\"
LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

\"\"
LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

\"\"\"\"<\/div>
LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

\"\"
LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

\"\"\"\"<\/div>
LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

\"\"
LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

\"\"\"\"<\/div>
LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

\"\"
LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n
\nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

\"\"\"\"<\/div>
LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

\"\"
LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

\u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n
  1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
  2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
  3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
  4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
    \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

    LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

    LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

    NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

    \"\"\"\"<\/div>
    LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

    LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

    LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

    LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

    \"\"
    LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

    With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

    LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

    \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

    \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

    Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

    Most Read

    Subscribe To Our Newsletter

    By subscribing, you agree with our privacy and terms.

    Follow The Distributed

    ADVERTISEMENT
    \n

    There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

    1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
    2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
    3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
    4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
      \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

      LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

      LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

      NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

      \"\"\"\"<\/div>
      LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

      LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

      LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

      LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

      \"\"
      LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

      With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

      LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

      \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

      \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

      Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

      Most Read

      Subscribe To Our Newsletter

      By subscribing, you agree with our privacy and terms.

      Follow The Distributed

      ADVERTISEMENT
      \n

      Examples Of NFT Wash Trades<\/h2>\n\n\n\n

      There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

      1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
      2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
      3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
      4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
        \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

        LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

        LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

        NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

        \"\"\"\"<\/div>
        LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

        LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

        LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

        LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

        \"\"
        LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

        With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

        LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

        \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

        \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

        Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

        Most Read

        Subscribe To Our Newsletter

        By subscribing, you agree with our privacy and terms.

        Follow The Distributed

        ADVERTISEMENT
        \n
        \"Data
        Data Depicting Wash Sales Within The Meebits Project - Source: CryptoSlam!<\/a><\/figcaption><\/figure>\n\n\n\n

        Examples Of NFT Wash Trades<\/h2>\n\n\n\n

        There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

        1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
        2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
        3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
        4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
          \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

          LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

          LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

          NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

          \"\"\"\"<\/div>
          LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

          LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

          LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

          LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

          \"\"
          LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

          With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

          LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

          \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

          \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

          Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

          Most Read

          Subscribe To Our Newsletter

          By subscribing, you agree with our privacy and terms.

          Follow The Distributed

          ADVERTISEMENT
          \n

          NFT analytics site, CryptoSlam!<\/a> allows users to search for certain NFT projects. Under each project, there is a section showing the amount of money classified under wash sales in the project.<\/p>\n\n\n\n

          \"Data
          Data Depicting Wash Sales Within The Meebits Project - Source: CryptoSlam!<\/a><\/figcaption><\/figure>\n\n\n\n

          Examples Of NFT Wash Trades<\/h2>\n\n\n\n

          There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

          1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
          2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
          3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
          4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
            \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

            LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

            LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

            NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

            \"\"\"\"<\/div>
            LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

            LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

            LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

            LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

            \"\"
            LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

            With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

            LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

            \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

            \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

            Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

            Most Read

            Subscribe To Our Newsletter

            By subscribing, you agree with our privacy and terms.

            Follow The Distributed

            ADVERTISEMENT
            \n

            Using a site like Etherscan<\/a> allows you to look at the history of the token, sites like Opensea<\/a> also have this feature within their platform. If you happen to see the same wallet within multiple transactions on the NFTs history, it is most likely a sign of wash trading.<\/p>\n\n\n\n

            NFT analytics site, CryptoSlam!<\/a> allows users to search for certain NFT projects. Under each project, there is a section showing the amount of money classified under wash sales in the project.<\/p>\n\n\n\n

            \"Data
            Data Depicting Wash Sales Within The Meebits Project - Source: CryptoSlam!<\/a><\/figcaption><\/figure>\n\n\n\n

            Examples Of NFT Wash Trades<\/h2>\n\n\n\n

            There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

            1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
            2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
            3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
            4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
              \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

              LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

              LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

              NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

              \"\"\"\"<\/div>
              LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

              LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

              LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

              LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

              \"\"
              LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

              With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

              LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

              \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

              \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

              Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

              Most Read

              Subscribe To Our Newsletter

              By subscribing, you agree with our privacy and terms.

              Follow The Distributed

              ADVERTISEMENT
              \n

              The most important thing is to always do your own research prior to any purchase, not just for NFTs. <\/p>\n\n\n\n

              Using a site like Etherscan<\/a> allows you to look at the history of the token, sites like Opensea<\/a> also have this feature within their platform. If you happen to see the same wallet within multiple transactions on the NFTs history, it is most likely a sign of wash trading.<\/p>\n\n\n\n

              NFT analytics site, CryptoSlam!<\/a> allows users to search for certain NFT projects. Under each project, there is a section showing the amount of money classified under wash sales in the project.<\/p>\n\n\n\n

              \"Data
              Data Depicting Wash Sales Within The Meebits Project - Source: CryptoSlam!<\/a><\/figcaption><\/figure>\n\n\n\n

              Examples Of NFT Wash Trades<\/h2>\n\n\n\n

              There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

              1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
              2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
              3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
              4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
                \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

                LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

                LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

                NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

                \"\"\"\"<\/div>
                LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

                LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

                LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

                LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

                \"\"
                LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

                With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

                LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

                \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

                \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

                Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

                Most Read

                Subscribe To Our Newsletter

                By subscribing, you agree with our privacy and terms.

                Follow The Distributed

                ADVERTISEMENT
                \n

                How To Identify Wash Trading In NFT Projects<\/h2>\n\n\n\n

                The most important thing is to always do your own research prior to any purchase, not just for NFTs. <\/p>\n\n\n\n

                Using a site like Etherscan<\/a> allows you to look at the history of the token, sites like Opensea<\/a> also have this feature within their platform. If you happen to see the same wallet within multiple transactions on the NFTs history, it is most likely a sign of wash trading.<\/p>\n\n\n\n

                NFT analytics site, CryptoSlam!<\/a> allows users to search for certain NFT projects. Under each project, there is a section showing the amount of money classified under wash sales in the project.<\/p>\n\n\n\n

                \"Data
                Data Depicting Wash Sales Within The Meebits Project - Source: CryptoSlam!<\/a><\/figcaption><\/figure>\n\n\n\n

                Examples Of NFT Wash Trades<\/h2>\n\n\n\n

                There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

                1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
                2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
                3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
                4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
                  \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

                  LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

                  LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

                  NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

                  \"\"\"\"<\/div>
                  LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

                  LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

                  LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

                  LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

                  \"\"
                  LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

                  With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

                  LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

                  \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

                  \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

                  Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

                  Most Read

                  Subscribe To Our Newsletter

                  By subscribing, you agree with our privacy and terms.

                  Follow The Distributed

                  ADVERTISEMENT
                  \n

                  The process usually occurs when one user buys their own NFT on a separate wallet. In turn, this gives their NFT an artificially raised price from what it was.<\/p>\n\n\n\n

                  How To Identify Wash Trading In NFT Projects<\/h2>\n\n\n\n

                  The most important thing is to always do your own research prior to any purchase, not just for NFTs. <\/p>\n\n\n\n

                  Using a site like Etherscan<\/a> allows you to look at the history of the token, sites like Opensea<\/a> also have this feature within their platform. If you happen to see the same wallet within multiple transactions on the NFTs history, it is most likely a sign of wash trading.<\/p>\n\n\n\n

                  NFT analytics site, CryptoSlam!<\/a> allows users to search for certain NFT projects. Under each project, there is a section showing the amount of money classified under wash sales in the project.<\/p>\n\n\n\n

                  \"Data
                  Data Depicting Wash Sales Within The Meebits Project - Source: CryptoSlam!<\/a><\/figcaption><\/figure>\n\n\n\n

                  Examples Of NFT Wash Trades<\/h2>\n\n\n\n

                  There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

                  1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
                  2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
                  3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
                  4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
                    \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

                    LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

                    LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

                    NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

                    \"\"\"\"<\/div>
                    LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

                    LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

                    LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

                    LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

                    \"\"
                    LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

                    With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

                    LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

                    \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

                    \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

                    Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

                    Most Read

                    Subscribe To Our Newsletter

                    By subscribing, you agree with our privacy and terms.

                    Follow The Distributed

                    ADVERTISEMENT
                    \n

                    After the success of projects like CryptoPunks<\/a> and B.A.Y.C.<\/a>, users are keen to find the next big thing. Wash trading creates a false sense of urgency and demand for a certain project making it seem 'on the rise'. FOMO is a dangerous emotion to play in the markets, but investors will often overlook the small details.<\/p>\n\n\n\n

                    The process usually occurs when one user buys their own NFT on a separate wallet. In turn, this gives their NFT an artificially raised price from what it was.<\/p>\n\n\n\n

                    How To Identify Wash Trading In NFT Projects<\/h2>\n\n\n\n

                    The most important thing is to always do your own research prior to any purchase, not just for NFTs. <\/p>\n\n\n\n

                    Using a site like Etherscan<\/a> allows you to look at the history of the token, sites like Opensea<\/a> also have this feature within their platform. If you happen to see the same wallet within multiple transactions on the NFTs history, it is most likely a sign of wash trading.<\/p>\n\n\n\n

                    NFT analytics site, CryptoSlam!<\/a> allows users to search for certain NFT projects. Under each project, there is a section showing the amount of money classified under wash sales in the project.<\/p>\n\n\n\n

                    \"Data
                    Data Depicting Wash Sales Within The Meebits Project - Source: CryptoSlam!<\/a><\/figcaption><\/figure>\n\n\n\n

                    Examples Of NFT Wash Trades<\/h2>\n\n\n\n

                    There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

                    1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
                    2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
                    3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
                    4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
                      \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

                      LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

                      LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

                      NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

                      \"\"\"\"<\/div>
                      LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

                      LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

                      LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

                      LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

                      \"\"
                      LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

                      With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

                      LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

                      \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

                      \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

                      Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

                      Most Read

                      Subscribe To Our Newsletter

                      By subscribing, you agree with our privacy and terms.

                      Follow The Distributed

                      ADVERTISEMENT
                      \n

                      Wash trading in regards to NFTs<\/a> is the process of buying and selling NFTs in a way to manipulate or mislead the market through artificially increased prices or heightened trading volume.<\/p>\n\n\n\n

                      After the success of projects like CryptoPunks<\/a> and B.A.Y.C.<\/a>, users are keen to find the next big thing. Wash trading creates a false sense of urgency and demand for a certain project making it seem 'on the rise'. FOMO is a dangerous emotion to play in the markets, but investors will often overlook the small details.<\/p>\n\n\n\n

                      The process usually occurs when one user buys their own NFT on a separate wallet. In turn, this gives their NFT an artificially raised price from what it was.<\/p>\n\n\n\n

                      How To Identify Wash Trading In NFT Projects<\/h2>\n\n\n\n

                      The most important thing is to always do your own research prior to any purchase, not just for NFTs. <\/p>\n\n\n\n

                      Using a site like Etherscan<\/a> allows you to look at the history of the token, sites like Opensea<\/a> also have this feature within their platform. If you happen to see the same wallet within multiple transactions on the NFTs history, it is most likely a sign of wash trading.<\/p>\n\n\n\n

                      NFT analytics site, CryptoSlam!<\/a> allows users to search for certain NFT projects. Under each project, there is a section showing the amount of money classified under wash sales in the project.<\/p>\n\n\n\n

                      \"Data
                      Data Depicting Wash Sales Within The Meebits Project - Source: CryptoSlam!<\/a><\/figcaption><\/figure>\n\n\n\n

                      Examples Of NFT Wash Trades<\/h2>\n\n\n\n

                      There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

                      1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
                      2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
                      3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
                      4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
                        \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

                        LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

                        LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

                        NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

                        \"\"\"\"<\/div>
                        LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

                        LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

                        LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

                        LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

                        \"\"
                        LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

                        With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

                        LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

                        \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

                        \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

                        Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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                        Subscribe To Our Newsletter

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                        Follow The Distributed

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                        \n

                        What Is NFT Wash Trading?<\/h2>\n\n\n\n

                        Wash trading in regards to NFTs<\/a> is the process of buying and selling NFTs in a way to manipulate or mislead the market through artificially increased prices or heightened trading volume.<\/p>\n\n\n\n

                        After the success of projects like CryptoPunks<\/a> and B.A.Y.C.<\/a>, users are keen to find the next big thing. Wash trading creates a false sense of urgency and demand for a certain project making it seem 'on the rise'. FOMO is a dangerous emotion to play in the markets, but investors will often overlook the small details.<\/p>\n\n\n\n

                        The process usually occurs when one user buys their own NFT on a separate wallet. In turn, this gives their NFT an artificially raised price from what it was.<\/p>\n\n\n\n

                        How To Identify Wash Trading In NFT Projects<\/h2>\n\n\n\n

                        The most important thing is to always do your own research prior to any purchase, not just for NFTs. <\/p>\n\n\n\n

                        Using a site like Etherscan<\/a> allows you to look at the history of the token, sites like Opensea<\/a> also have this feature within their platform. If you happen to see the same wallet within multiple transactions on the NFTs history, it is most likely a sign of wash trading.<\/p>\n\n\n\n

                        NFT analytics site, CryptoSlam!<\/a> allows users to search for certain NFT projects. Under each project, there is a section showing the amount of money classified under wash sales in the project.<\/p>\n\n\n\n

                        \"Data
                        Data Depicting Wash Sales Within The Meebits Project - Source: CryptoSlam!<\/a><\/figcaption><\/figure>\n\n\n\n

                        Examples Of NFT Wash Trades<\/h2>\n\n\n\n

                        There have been a lot of users who have come across this type of market manipulation, here are some examples.<\/p>\n\n\n\n

                        1. CryptoPunk #9998 which sold for $530 million<\/a> using a flash loan. <\/li>
                        2. \u00a0Meebit #13824<\/a> selling for over $49.5 million<\/a><\/li>
                        3. A Coinbase employee was arrested over allegations including wash sales. ((https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8369-21))<\/li>
                        4. 95% of the trading platform LooksRare's volume is derived from wash trading<\/a><\/li><\/ol>\n\n\n\n
                          \nhttps:\/\/twitter.com\/cryptoslamio\/status\/1487114454848491524\n<\/div><\/figure>\n","post_title":"NFT Wash Trading Explained","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/cryptopunk-9998\/","post_modified":"2022-06-02 22:09:30","post_modified_gmt":"2022-06-02 12:09:30","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4247","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4226,"post_author":"1","post_date":"2022-04-06 06:51:19","post_date_gmt":"2022-04-05 20:51:19","post_content":"\n

                          LooksRare<\/a> is the 2nd largest<\/a> NFT marketplace by volume. Although 95% of its trading volume<\/a> is coming from users selling and buying their own NFTs.<\/p>\n\n\n\n

                          LooksRare was launched on January 10th this year, within that time frame it has amassed over $22.5 billion in sales over 109,000 transactions according to Dune Analytics.<\/p>\n\n\n\n

                          NFT analytics site CryptoSlam! reported<\/a> in January that over $8 billion worth of NFT sales can be classified under wash trading. Since then, around 95% of sales on the site, or around $20B can be linked to wash trading<\/a>.<\/p>\n\n\n\n

                          \"\"\"\"<\/div>
                          LooksRare Trading Volume With<\/a> \/ Without<\/a> Wash Trading - Source: Dune Analytics<\/a><\/figcaption><\/figure>\n\n\n\n

                          LooksRare was launched by two anonymous developers, Zodd and Guts, in January of 2022. Since its launch, LooksRare has grown to become the biggest alternative to\u00a0the leading NFT marketplace,\u00a0OpenSea<\/a>. Despite the decline in NFT sales this year, users are still finding ways to make a quick profit, ethical or not.<\/p>\n\n\n\n

                          LooksRare Intentional Setup Of Wash Trading<\/h2>\n\n\n\n

                          LooksRare came up with a genius trading rewards model<\/a> to help grow their site. LooksRare will offer token rewards in LooksRare Token ($LOOKS<\/a>) to users who buy and sell on their platform.<\/p>\n\n\n\n

                          \"\"
                          LooksRare Historical Trading Volume - Source: DappRadar<\/a><\/figcaption><\/figure>\n\n\n\n

                          With this users can cheat the system. NFTs can be wash traded where the prices of the NFT would be inflated to the point that the $LOOKS reward would be enough to cover the Ethereum gas fees<\/a> and LooksRare's 2% marketplace fee. With this fact, LooksRare also provides staking rewards for users who stake $LOOKS on the platform, paid out in Wrapped Ethereum ($WETH<\/a>), this is an even larger reason for users to keep using the site.<\/p>\n\n\n\n

                          LooksRare is aware of the fact this is happening. They retweeted <\/a>a tweet that called these tactics \"genius\" back near their launch in January, they also did not institute any methods at their launch to deter users from buying and selling their own NFTs at inflated prices.<\/p>\n\n\n\n

                          \nhttps:\/\/twitter.com\/LooksRareNFT\/status\/1487018639949582336?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1487018639949582336%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F91510%2Flooksrare-has-reportedly-generated-8b-ethereum-nft-wash-trading\n<\/div><\/figure>\n\n\n\n

                          \u201cIt seems that organic trading is indeed increasing in LooksRare. The difference between selling expensive NFTs like BAYC on LooksRare rather than OpenSea can become a 1-2 Ether difference that the seller saves. So it appears that the NFT community is slowly adopting other options outside the incumbent.\u201d <\/em><\/p>Pedro Herrera, Senior Data Analyst at DappRadar. <\/cite><\/blockquote>\n\n\n\n

                          Although this success may not be long-lived. Wash trading in other markets is considered an illegal act. Chainalysis made a point of this in a report<\/a> and recommends LooksRare to discourage the activity of wash trading. As regulators<\/a> start taking closer looks into markets, these moves which seem fine now may eventually come back to hit the users even harder.<\/p>\n","post_title":"Wash Trading Makes Up 95% Of LooksRare Trading Volume","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wash-trading-makes-up-95-of-looksrare-trading-volume","to_ping":"","pinged":"https:\/\/blog.chainalysis.com\/reports\/2022-crypto-crime-report-preview-nft-wash-trading-money-laundering\/\nhttps:\/\/www.thedistributed.co\/gas-fees\/","post_modified":"2022-04-07 21:27:34","post_modified_gmt":"2022-04-07 11:27:34","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=4226","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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                          Wash Trading

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