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I think that is kind of the point. This a social commentary on the absurdity of NFTs and crypto. There was the study yesterday that showed that 70% of crypto t

I think that is kind of the point. This a social commentary on the absurdity of NFTs and crypto. There was the study yesterday that showed that 70% of crypto trading was wash trading. I.e junk to inflate the appearance of the market. I see this being mostly zeros as effectively the same. It was meant to be found to be junk, to show how stupid it all is.

ganzuul 5y ago
It is a matter of signal to noise ratio of the network.
episteme 5y ago
It was 70% of the trading done on -unregulated- exchanges.
- boldslogan 5y ago
  right, but doesnt the alledged spill over effect of increasing the price on the unregulated exchange, impact the price regardless of exchange? You don't ask for btc price X on coinbase versus btc price Y on biance? Wouldn't you just care about the price of btc? and if it rises on certain exchanges, then it would arbitrage until it rose on other exchanges as well?
  - jstanley 5y ago
    > if it rises on certain exchanges, then it would arbitrage until it rose on other exchanges as well? More like the opposite. The fake price rise would be arbitraged away to match the real price. At some point there has to be a real buyer/seller, otherwise arbitrage doesn't work. And a real buyer/seller is trading at the real price.
- codebolt 5y ago
  Well, then how many % of crypto volume happens on properly 'regulated' exchanges? And what are the requirements those exchanges must meet (are they held to the same standard as major stock exchanges, for example?)
- qeternity 5y ago
  Given that Coinbase paid a fine for wash trading, performed by none other than former Coinbase employee and Litecoin creator Charlie Lee, I’m not sure what you’re suggesting here.
  - jimmydorry 5y ago
    Regulation working as intended?
leppr 5y ago
That study was not rigorous and their claim easily falsifiable. You can't prove wash trading on centralized exchanges. It's a study specifically made for people to quote in arguments such as yours. Not commenting on the general sentiment.
- qeternity 5y ago
  > That study was not rigorous and their claim easily falsifiable. Specifically, what part of their methodology is not rigorous? Given that a substantial chunk of the top tier exchanges have been caught and charged with wash trading (Bitmex, Coinbase), I think we already have quite a bit of circumstantial evidence to suggest it is likely an issue.

ganzuul 5y ago

It is a matter of signal to noise ratio of the network.

episteme 5y ago

It was 70% of the trading done on -unregulated- exchanges.

boldslogan 5y ago
right, but doesnt the alledged spill over effect of increasing the price on the unregulated exchange, impact the price regardless of exchange? You don't ask for btc price X on coinbase versus btc price Y on biance? Wouldn't you just care about the price of btc? and if it rises on certain exchanges, then it would arbitrage until it rose on other exchanges as well?
- jstanley 5y ago
  > if it rises on certain exchanges, then it would arbitrage until it rose on other exchanges as well? More like the opposite. The fake price rise would be arbitraged away to match the real price. At some point there has to be a real buyer/seller, otherwise arbitrage doesn't work. And a real buyer/seller is trading at the real price.
codebolt 5y ago
Well, then how many % of crypto volume happens on properly 'regulated' exchanges? And what are the requirements those exchanges must meet (are they held to the same standard as major stock exchanges, for example?)
qeternity 5y ago
Given that Coinbase paid a fine for wash trading, performed by none other than former Coinbase employee and Litecoin creator Charlie Lee, I’m not sure what you’re suggesting here.
- jimmydorry 5y ago
  Regulation working as intended?

leppr 5y ago

That study was not rigorous and their claim easily falsifiable. You can't prove wash trading on centralized exchanges. It's a study specifically made for people to quote in arguments such as yours. Not commenting on the general sentiment.

qeternity 5y ago
> That study was not rigorous and their claim easily falsifiable. Specifically, what part of their methodology is not rigorous? Given that a substantial chunk of the top tier exchanges have been caught and charged with wash trading (Bitmex, Coinbase), I think we already have quite a bit of circumstantial evidence to suggest it is likely an issue.