There are many factors why the market for it cryptocurrencies it fell so hard, but the market is still holding up relatively well. But second investor and billionaire Mark Cuban is going to put an end to this. Exchanges would keep prices artificially high.
Is wash trading still a big deal?
In an interview with The street warn the family member Shark Tank-investor for what he sees as the next big scandal: washing business. This is an illegal tactic to manipulate asset prices. In the washing trade bought and sold a lot on purpose, which makes it appear that there is much more liquidity. This facilitates the buying and selling of large quantities, which inspires confidence.
Cuban thinks washing trades often take place on centralized exchanges. However, he does not mention names, nor does he say if any cryptocurrency exchanges participate in it themselves. In fact, he has no concrete evidence to suspect him. “There would be tens of millions of dollars of liquidity for tokens that aren’t used that much. I can’t imagine why [zonder wash trading] it would be so liquid,” he says.
Last summer wrote Forbes than more than half of all bitcoin (BTC) trades nep is. So Cuban isn’t the only one who thinks so. According to an analysis by blockchain research firm Dune, it is also happening in the world of NFTs (Non-fungible tokens). In 2022 it would be 60% of all have NFT trading volume consist of washing crafts. According to US government in 2022 it will even be 70% of all purchases and sales.
Mark Cuban: The next bitcoin crash is on the way
If it is true that this problem still exists, then the market could have a problem if the parties involved are forced to stop. If this volume disappears, prices can be increased or decreased more easily by the remaining traders. Cuban thinks it will cause an implosion.
