Chainalysis recognizes significant” Wash trading with NFTS news

chainalysis, one of the leading auditing companies for blockchain and cryptocurrencies, has published a report that shows signs of significant wash trading activities with NFTs. In these operations, some actors effectively sell their assets on themselves, with the intention of increasing the minimum price of the NFTs in order to sell them later at a higher price. However, this washing activity was not always profitable due to the gas costs.

Wash Trading with NFTS is real, says Chainalysis

A new report output by chainalysis, one of the leading auditing and Tracking companies in the crypto area, has found "considerable" washing activities on the NFT market. These activities have the goal of making a NFF more valuable by giving it the appearance of previous sales. With the blockchain analysis, the company was able to recognize 262 users who sold more than 25 times NFTs to self-financed addresses.

The most active address in these activities has carried out this procedure over 800 times, but it did not bring very good results for its owner. Due to the gas fees, the price of the transactions made to enable these movements was significantly higher than the profit made from the sales. According to the report, the address has lost over $ 8,000.

profitability and legal status

The WASH trading activities with NFTs were, however, profitable as a whole, with several addresses millions. The company found that 110 addresses involved in these activities made more than $ 8,800,000 in profit from the washing trade.

The legal status of the washing trade on NFT markets is not clear, according to the company. The chain analysis says:

The NFT washing trade exists in a dark area of law. While wash trading is prohibited in conventional securities and futures, Wash trading with NFTS still has to be the subject of a lawsuit.

However, this could change if NFTs are becoming increasingly popular. With the Explosion from nfts in 2021 and several companies to integrate into their business models from Wash-trading the attention of supervisory authorities around the world.

The company also discovered limited cases of money laundering with NFTS, which mainly came from fraudulent addresses. Chainalysis described this activity as "drops on the hot stone" compared to the crowd that was washed with cryptocurrency in 2021.

What do you think about the report of chainalysis about NFT-related wash-trading? Tell us in the comment area below.

Sergio Göschenko

sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game and entered the cryptosphere when the price increase took place in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. It offers a different perspective on the crypto success and how it helps those who have no bank account and are under-supplied.

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