Wash Trade
By CoinGecko | Updated on Mar 03, 2020
Wash trading is a way to artificially inflate the trading volume of any tradable assets on an exchange. To wash trade, a single party becomes both the buyer and seller to trade the asset back and forth at high speeds. This activity will be conflated into an exchange's regular trading volume to appear as if ther are a lot of trading activity on the market. This is ussually done either by a "market maker" to help a coin appear appealing to trader or by an exchange itself to trick traders into thinking they are trading in an active exchange.
Related Terms
Decentralized
A system where there are no centralized points of failure or organization with no central authority figure.
Application Programming Interface (API)
It is a software that acts like an intermediary or a bridge that lets two applications talk to each other. It is the one that lets applications, data and devices interact.
Mainnet
It is the main network of Bitcoin, where the transactions of this cryptocurrency are registered and take place.
Total Value Locked
Total Value Locked (TVL) represents the number of assets that are currently staked in a protocol or the total quantity of underlying amount of funds that a DeFi protocol has secured.
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