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
Testnet
Shorthand for "Test Network", testnets are staging areas for experimenting new blockchain features.
Decentralized Finance (DeFi)
Decentralized Finance (DeFi) refers to the movement of building decentralized financial applications that have no central authority and is censorship free.
Hashrate
Total processing power of a blockchain or what is the same, are the amount of hash values that can be made in a period of time.
Mempool
It is the abbreviation of Memory Pool. Set of unconfirmed transactions in a blockchain
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