What is wash trading, the fraudulent practice that some experts say accounts for 70% of transactions on crypto exchanges?

Wash trading accounts for 70% of trades on some crypto exchanges, a study found.  The practice of firms trading with themselves to boost prices artificially may lure

inexperienced investors.  Three experts dive into the practice and what it means for the crypto market.  Illicit crypto transactions skyrocketed in 2022 as scammers and hackers

made off with billions, but there's another type of fraud lurking in the industry—wash trading, the fraudulent practice some traders and crypto firms can use to pump prices, dupe

investors, and make trading appear more liquid.  A recent working paper from the National Bureau of Economic Research found that wash trades accounted for up to 70% of all

transaction on non-compliant crypto exchanges, suggesting most trades on these platforms are fraudulent. Mark Cuban, an avid cryptocurrency investor, warned his followers that the

discovery and regulatory crackdown on wash trades could potentially set up another implosion in the industry.What is wash trading and why is it bad? Wash trading is

essentially when a firm or party trades with itself to artificially boost prices, give the illusion of liquidity, and generate interest from other investors, according to Timothy

Cradle, the director of regulatory affairs at Blockchain Intelligence. That can lead other investors to buy the token at an artificially high price. It's fraud and a form of

market manipulation, he said.