NFTs, DAOs & Web3

What is NFT wash trading?

NFT wash trading is the practice of buying and selling the same NFT between wallets you control to create the false impression of demand or trading volume. Because blockchains let one person operate many wallets cheaply, a trader can move an NFT back and forth, inflating its apparent price and ranking on marketplaces without any genuine buyer. For example, two linked wallets might trade a token a dozen times in an hour to push it onto a trending list. The activity is misleading and, in many markets, manipulative, so reported NFT volumes often overstate real liquidity.