3 ms·
That doesn't pass the smell test. Sure, you can wash trade on Uniswap, but it's expensive and everyone can see you doing it. The fee on most pools on Uniswap i
by joshfraser 5y ago
That doesn't pass the smell test.
Sure, you can wash trade on Uniswap, but it's expensive and everyone can see you doing it. The fee on most pools on Uniswap is 0.30%.
In contrast, wash trading on most centralized exchanges is cheap or free and very hard to prove unless you have access to their internal data.
- teitoklien 5y agoIm specifically talking about up and coming , memecoins. The liquidity pool on these are usually provided by token owner themselves, fee doesnt matter there (gas fees does, but they make much much more by doing this). Tokens like these need these fake volumes to get the necessary amount of holders , publicity and volume to qualify to be listed on centralised exchanges. Even when everyone can see you do it, owners of popular trending lists which list these tokens, intentionally look the other way on this wash trading and just need it for fulfilling listing requirements.
- joshfraser 5y agoYou can't do it without putting significant capital at risk since you also have to supply the other side of the pair. If there is no organic demand for your memecoin, people will be happy to dump it and take your ETH.
- teitoklien 5y agoExcept there is, they spend money on marketing and fill up telegram groups with tons of people who fall for this scam everyday, 90% of telegram groups involving crypto tokens are scams like these. People get scammed daily by this.
- airstrike 5y agoThis sounds like a much more interesting read than the TFA
- tornato7 5y agoIf you want to see some examples of crypto scams go to /r/cryptomoonshots on Reddit. Almost everything posted there is some sort of rug pull scam with fake upvotes.
- airstrike 5y agoThanks. So you're saying " FlokiVengers | New Heroes NFT Token Marketplace & NFT Launch Incoming Doxxed Dev | BUSD Rewards | join the Resistance! BSC Token" is a scam?
- xur17 5y agoI mostly agree with you, but it's worth noting that the fee is distributed to the uniswap pool participants. Which means for a smaller coin that you are trying to pump, it would be feasible to deposit the majority of the money into the pool, and then trade back and forth to show volume. You'd be out gas fees + whatever portion of the trading fees the other participants receive.