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Wash trading in decentralized markets remains a significant concern magnified by the pseudonymous and public nature of blockchains. In this paper we introduce an innovative methodology designed to detect wash trading activities beyond…

Computational Engineering, Finance, and Science · Computer Science 2023-12-29 Aleksandar Tošić , Niki Hrovatin , Jernej Vičič

We introduce systematic tests exploiting robust statistical and behavioral patterns in trading to detect fake transactions on 29 cryptocurrency exchanges. Regulated exchanges feature patterns consistently observed in financial markets and…

General Economics · Economics 2021-08-26 Lin William Cong , Xi Li , Ke Tang , Yang Yang

The smart contract-based markets for non-fungible tokens (NFTs) on the Ethereum blockchain have seen tremendous growth in 2021, with trading volumes peaking at 3.5b in September 2021. This dramatic surge has led to industry observers…

Cryptography and Security · Computer Science 2022-02-09 Victor von Wachter , Johannes Rude Jensen , Ferdinand Regner , Omri Ross

Wash trading is a form of market manipulation where the same entity sells an asset to themselves to drive up market prices, launder money under the cover of a legitimate transaction, or claim a tax loss without losing ownership of an asset.…

General Finance · Quantitative Finance 2023-05-03 Derek Liu , Francesco Piccoli , Katie Chen , Adrina Tang , Victor Fang

Wash trading, the practice of simultaneously placing buy and sell orders for the same asset to inflate trading volume, has been prevalent in cryptocurrency markets. This paper investigates whether wash traders in Bitcoin act deliberately to…

Trading and Market Microstructure · Quantitative Finance 2024-11-14 Hunter Ng

The Non-Fungible Token (NFT) market in the Ethereum blockchain experienced explosive growth in 2021, with a monthly trade volume reaching \$6 billion in January 2022. However, concerns have emerged about possible wash trading, a form of…

Computers and Society · Computer Science 2024-09-04 Massimo La Morgia , Alessandro Mei , Alberto Maria Mongardini , Eugenio Nerio Nemmi

DEX, or decentralized exchange, is a prominent class of decentralized finance (DeFi) applications on blockchains, attracting a total locked value worth tens of billions of USD today. This paper presents the first large-scale empirical study…

Cryptography and Security · Computer Science 2024-01-23 Jiaqi Chen , Yibo Wang , Yuxuan Zhou , Wanning Ding , Yuzhe Tang , XiaoFeng Wang , Kai Li

The Ethereum blockchain network is a decentralized platform enabling smart contract execution and transactions of Ether (ETH) [1], its designated cryptocurrency. Ethereum is the second most popular cryptocurrency with a market cap of more…

Social and Information Networks · Computer Science 2018-10-04 Morit Zwang , Shahar Somin , Alex 'Sandy' Pentland , Yaniv Altshuler

As emerging digital assets, NFTs are susceptible to anomalous trading behaviors due to the lack of stringent regulatory mechanisms, potentially causing economic losses. In this paper, we conduct the first systematic analysis of four…

Cryptography and Security · Computer Science 2024-03-18 Yuanzheng Niu , Xiaoqi Li , Hongli Peng , Wenkai Li

NFTs (Non-Fungible Tokens) have seen significant growth since they first captured public attention in 2021. However, the NFT market is plagued by fake transactions and economic bubbles, e.g., NFT wash trading. Wash trading typically refers…

Cryptography and Security · Computer Science 2024-07-23 Shijian Chen , Jiachi Chen , Jiangshan Yu , Xiapu Luo , Yanlin Wang

Existing studies on crypto wash trading often use indirect statistical methods or leaked private data, both with inherent limitations. This paper leverages public on-chain NFT data for a more direct and granular estimation. Analyzing three…

General Economics · Economics 2025-03-04 Brett Hemenway Falk , Gerry Tsoukalas , Niuniu Zhang

The prosperity of the cryptocurrency ecosystem drives the need for digital asset trading platforms. Beyond centralized exchanges (CEXs), decentralized exchanges (DEXs) are introduced to allow users to trade cryptocurrency without…

Cryptography and Security · Computer Science 2021-11-12 Pengcheng Xia , Haoyu wang , Bingyu Gao , Weihang Su , Zhou Yu , Xiapu Luo , Chao Zhang , Xusheng Xiao , Guoai Xu

We develop a new framework to detect wash trading in crypto assets through real-time liquidity fluctuation. We propose that short-term price jumps in crypto assets results from wash trading-induced liquidity fluctuation, and construct two…

Risk Management · Quantitative Finance 2025-04-01 Qi Deng , Zhong-Guo Zhou

Cryptocurrency has been extensively studied as a decentralized financial technology built on blockchain. However, there is a lack of understanding of user experience with cryptocurrency exchanges, the main means for novice users to interact…

Human-Computer Interaction · Computer Science 2022-06-16 Zhixuan Zhou , Bohui Shen

Decentralized cryptocurrency exchanges offer compelling security benefits over centralized exchanges: users control their funds and avoid the risk of an exchange hack or malicious operator. However, because user assets are fully accessible…

Cryptography and Security · Computer Science 2021-06-22 Robert Annessi , Ethan Fast

Inspired by Bitcoin, many different kinds of cryptocurrencies based on blockchain technology have turned up on the market. Due to the special structure of the blockchain, it has been deemed impossible to directly trade between traditional…

Cryptography and Security · Computer Science 2020-05-08 Hangyu Tian , Kaiping Xue , Shaohua Li , Jie Xu , Jianqing Liu , Jun Zhao

Due to the widespread use of smart contracts, Ethereum has become the second-largest blockchain platform after Bitcoin. Many different types of Ethereum accounts (ICO, Mining, Gambling, etc.) also have quite active trading activities on…

Cryptography and Security · Computer Science 2022-11-16 Baoying Huang , Jieli Liu , Jiajing Wu , Quanzhong Li , Hao Lin

With the growing popularity of Non-Fungible Tokens (NFT), a new type of digital assets, various fraudulent activities have appeared in NFT markets. Among them, wash trading has become one of the most common frauds in NFT markets, which…

Human-Computer Interaction · Computer Science 2023-02-14 Xiaolin Wen , Yong Wang , Xuanwu Yue , Feida Zhu , Min Zhu

The properties of tokens within the Ethereum blockchain, such as their current prices, trade volumes, and potential future values, have been the subjects of numerous studies. Employing social networks and graphs, as powerful tools for…

Social and Information Networks · Computer Science 2023-10-24 Aryan Soltani Mohammadi , Moein Karami , Amir Pasha Motamed , Behnam Bahrak

With the overall momentum of the blockchain industry, crypto-based crimes are becoming more and more prevalent. After committing a crime, the main goal of cybercriminals is to obfuscate the source of the illicit funds in order to convert…

Cryptography and Security · Computer Science 2023-05-25 Dan Lin , Jiajing Wu , Qishuang Fu , Yunmei Yu , Kaixin Lin , Zibin Zheng , Shuo Yang
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