Meaning of wash trade | Babel Free

Definitions

A trade in which someone simultaneously sells and buys (from themselves) the same financial instruments, to create misleading, artificial activity in the market (especially to make the instruments appear to be frequently traded and in demand).

Examples

“To do so, you plan to list the NFT for sale and buy it from yourself at a buzzworthy sum—say, for 1,000 ETH. If you already have a lot of crypto wealth, you can easily execute this wash trade by simply purchasing the NFT from yourself using a second account.”

CEFR level