Token price manipulation is rampant on Ethereum-based decentralized exchanges, where so-called wash trades amounted to at least $2 billion worth of cryptocurrencies since September 2020, according to a study by researcher Solidus Labs.
Wash trading, a form of market price manipulation in which a trader buys and sells a security, can involve token issuers and other parties selling a coin to each other to increase its price and trading volume – and make it a viable candidate for listing on a centralized market. Exchanges.
