What is Wash Trading?

Wash trading is when someone trades an asset with themselves (or with colluding partners) to manufacture fake volume and price action, making it look far more active and in-demand than it is. It's illegal in regulated markets and rampant in unregulated crypto corners.

The purpose is deception: fake volume lures real buyers ('this token is hot!'), inflates rankings on trackers, and sets up the exit for insiders. The activity is real transactions; the demand behind them is a costume.

How to protect yourself: be skeptical of tokens or NFTs with huge volume but tiny genuine communities, check liquidity and holder counts, and remember that volume can be bought — conviction can't.