In the past 24 hours, fake NFT transactions on the Ethereum blockchain rose 30% to $4.7 million
Over the past 24 hours, fake NFT sales on the Ethereum blockchain grew by 30% and amounted to $4.7 million, or about 50% of the value of all NFTs sold on the blockchain on Sunday. This is reported by DLNews with reference to data from CryptoSlam.
How the trade is being “mopped up”
Bulk trading is a fraudulent practice that helps inflate the price of digital assets and also creates the appearance of high user activity.
It is not difficult to “wash” the volumes: the purchase and sale takes place between the wallets of the same person or related persons. That is, the transaction takes place in form, but not in substance. The asset and the money do not change ownership.
It is often used by crypto exchanges and trading platforms, as well as issuers of non-interchangeable tokens to create a frenzy around their assets.
A wave of fakes on Blur
For the majority of cryptocurrency tokens, it is unprofitable to use a soapbox strategy to enrich yourself, especially when it comes to trading on decentralized platforms. There, arbitrage and direct bets prevail.
However, in the NFT market, this strategy effectively spreads hype and is often used by unscrupulous players. According to DeFiLlama, muck trading accounted for just over 40% of transactions on the Blur NFT marketplace last week.