Mark Cuban: Wash Trading May Trigger the Next "Blowup" in the Crypto Industry

2023-01-06 12:47:57

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ChainCatcher news, billionaire NBA Dallas Mavericks owner Mark Cuban stated in an interview with The Street that wash trading of cryptocurrencies on centralized exchanges could be the trigger for the next "blowup" in the crypto market. "There are allegedly tens of millions of dollars in trading and liquidity tokens with very low utilization rates, and I don't understand how they could have such high liquidity." However, Cuban noted that this is just a prediction and added, "I haven't provided any details to support my guess."

Previously reported, the National Bureau of Economic Research (NBER) recently published a report titled "Cryptocurrency Wash Trading." The report used statistical and behavioral patterns to determine which trades are legitimate or illegitimate, studying 29 unregulated exchanges. The conclusion drawn is that, on average, over 70% of the trading volume on these platforms is wash trading. (source link)

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