Solidus Labs Uncovers $2 Billion Worth of Wash Trades on Decentralized Exchanges
$2B worth of wash trades found on Decentralized Exchanges...
- Solidus Labs, a crypto-native trade surveillance and risk monitoring firm, has identified wash trading activity worth $2 billion on Ethereum-based decentralized exchanges (DEXs) since 2020.
- Wash trading refers to traders executing self-trades to create artificial movements in crypto token prices or volumes.
- Wash trading accounted for 16% of the total trading volume in manipulated DEX liquidity pools.
- Solidus Labs' report provides data and examples of fraudsters' methods for wash trading, highlighting the vulnerability of smaller markets in the DeFi space.
- The report also mentions a case where a network of connected wallets engaged in wash trading a meme token called "SHIBAFARM" for a profit exceeding $2 million.
- Asaf Meir, the Founder and Chief Executive of Solidus Labs, emphasizes the need to prevent market manipulation for the healthy growth of the crypto and DeFi sectors.
- Solidus Labs is developing solutions for wash trading detection and prevention on DEXs, such as Token Sniffer and DEX-based A-A Wash Trading Detection.
- EDX Markets, a crypto exchange supported by major Wall Street entities, has partnered with Solidus Labs to enhance transaction monitoring on its platform.
The article highlights the issue of wash trading on decentralized exchanges and emphasizes the need to prevent market manipulation for the growth of the crypto and DeFi sectors. It also mentions the efforts of Solidus Labs in developing solutions and their partnership with EDX Markets. Overall, the sentiment is focused on addressing the problem and finding solutions.