{"id":535992,"date":"2023-01-06T07:15:29","date_gmt":"2023-01-06T04:15:29","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/wash-trading-will-cause-cryptos-next-implosion-mark-cuban\/"},"modified":"2023-01-06T07:15:29","modified_gmt":"2023-01-06T04:15:29","slug":"wash-trading-will-cause-cryptos-next-implosion-mark-cuban","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/wash-trading-will-cause-cryptos-next-implosion-mark-cuban\/","title":{"rendered":"# Wash trading will cause crypto\u2019s next implosion: Mark Cuban"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e209377e9c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e209377e9c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/wash-trading-will-cause-cryptos-next-implosion-mark-cuban\/#%E2%80%9D_Wash_trading_will_cause_cryptos_next_implosion_Mark_Cuban_%E2%80%9C\" >&#8221; Wash trading will cause crypto\u2019s next implosion: Mark Cuban &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Wash_trading_will_cause_cryptos_next_implosion_Mark_Cuban_%E2%80%9C\"><\/span>&#8221; Wash trading will cause crypto\u2019s next implosion: Mark Cuban &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-6ed77c39>Crypto token wash trading on centralized exchanges will be the cause of the next crypto \u201cimplosion,\u201d according to billionaire Dallas Mavericks owner and crypto investor\u00a0Mark Cuban.<\/p>\n<p>In an interview with The Street on Jan. 5, the billionaire investor opined that 2023 will not be short of crypto scandals following the numerous fiascos that rocked 2022. <\/p>\n<p>Cuban, who has backed several crypto and Web3 startups, said he believes the next biggest thing to impact the industry will be &#8220;the discovery and removal of wash trades on central exchanges.\u201d<\/p>\n<p>\u201cThere are supposedly tens of millions of dollars in trades and liquidity for tokens that have very little utilization,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.thestreet.com\/investing\/cryptocurrency\/billionaire-mark-cuban-warns-of-potential-new-crypto-scandal-fraud\">said<\/a> before adding, \u201cI don&#8217;t see how they can be that liquid.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/6e33b6eb-d580-47ea-bf4c-8cba4395ff64.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Mark Cuban . Source: American Broadcasting Company website<\/em><\/figcaption><\/figure>\n<p>Wash trading, which is illegal under U.S. law, is a process whereby a trader or bot buys and sells the same crypto asset to feed misleading information to the market. <\/p>\n<p>The goal is to artificially inflate volumes so that retail traders jump on the bandwagon and push prices up. In essence, it is a pump-and-dump scheme.<\/p>\n<p>Cuban said it was just a prediction, adding \u201cI don&#8217;t have any specifics to offer to support my guess.\u201d<\/p>\n<p>As much as 70% of the volume on unregulated exchanges is wash trading according to a December report by the National Bureau of Economic Research (NBER). <\/p>\n<p>Researchers used statistical and behavioral patterns to determine which transactions were legitimate and which ones were spurious.<\/p>\n<p>Furthermore, a 2022<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/javierpaz\/2022\/08\/26\/more-than-half-of-all-bitcoin-trades-are-fake\/?sh=535307f26681\"> study<\/a> by Forbes on 157 centralized exchanges found that more than half the Bitcoin trade volumes were fake.<\/p>\n<p><strong><em>Related:<\/em><\/strong><strong><em> <\/em><\/strong><strong><em>Mark Cuban to Bill Maher: \u2018If you have gold, you\u2019re dumb as fuck&#8230; Just get Bitcoin.\u2019<\/em><\/strong><\/p>\n<p>Wash trading isn\u2019t just limited to centralized exchanges, however. On Jan. 5, Quantum Economics CEO and former eToro senior market analyst, Mati Greenspan, said that 42% of all NFT volume is wash traded.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Yeah. It&#8217;s 2023 and we&#8217;re still talking about wash trading. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/y9kiLbu4Eu\">https:\/\/t.co\/y9kiLbu4Eu<\/a><\/p>\n<p>\u2014 Mati Greenspan (@MatiGreenspan) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MatiGreenspan\/status\/1611015548015362050?ref_src=twsrc%5Etfw\">January 5, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He added that wash trading is also used to harvest tax losses, making it <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear (to the taxman) that there has been a greater loss than in reality.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/wash-trading-will-cause-crypto-s-next-implosion-mark-cuban\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Wash trading will cause crypto\u2019s next implosion: Mark Cuban &#8220; Crypto token wash trading on centralized exchanges will be the cause of the next crypto \u201cimplosion,\u201d according to billionaire Dallas Mavericks owner and crypto investor\u00a0Mark Cuban. In an interview with The Street on Jan. 5, the billionaire investor opined that 2023 will not be&#8230;<\/p>\n","protected":false},"author":1,"featured_media":535993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/c69a1d3c-e171-4b3e-8a09-eae0536b2f28.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75917,74355,72590,71407],"class_list":["post-535992","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-exchanges","tag-adoption","tag-mark-cuban","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/535992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=535992"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/535992\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/535993"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=535992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=535992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=535992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}