After Bitcoin Wash Trading Surges on Binance, CEO Nixes Incentives

Wash trading is when when traders sell and buy assets from themselves or make otherwise fictitious trades. For example, NFT marketplace LooksRare sees plenty of wash trading because of its LOOKS token, which is earned by using the site.

A community manager at Mandala Exchange noticed on Friday that a large volume of Bitcoin had been suddenly traded within a short period of time, but Bitcoin’s price had barely changed. This suggested that a large number of traders were buying and selling, keeping the price more or less stable. Binance currently has nine different VIP tiers, each of which lower user fees for all currencies listed on the exchange. The more funds a user has spot traded within 30 days, the higher their VIP tier will be.

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