5 ms·
Bot-to-bot wash trades as evidence of legitimacy, classic web3.
by badrequest 3y ago
Bot-to-bot wash trades as evidence of legitimacy, classic web3.
- xk_id 3y agoUnsupported conspiracy theories, classic cryptophobia.
- z33k 3y agoMultiple studies have consistently found the majority of crypto/ dex/ dapp TXs being done by bots. 2019: https://anchainai.medium.com/our-ai-detects-your-ai-revealing-the-secret-blockchain-dapp-world-of-bots-eed8884a07 https://anchainai.medium.com/our-ai-detects-your-ai-revealin... 2022: https://twitter.com/messaricrypto/status/1599916553780137985 https://twitter.com/messaricrypto/status/1599916553780137985
- archerx 3y agoSo just like Wallstreet?
- xk_id 3y agoThe 2019 study published on medium only lists machine learning buzzwords in their methods section. The 2022 twitter link doesn’t explain the methodology at all; on the other hand, Messari is usually legit (but paywalled). Regardless, programmable transactions are in fact a feature of DeFi, they are launched by real people anyway and it doesn’t automatically imply “wash trading”; that’s just bad faith speculation.
- z33k 3y agoIt does imply, however, that citing figures like "$1.72 billion of on-chain transaction volume in the last 24h" in the context of web3's health is misleading or false.
- xk_id 3y agoFalse? How? It’s verifiable on-chain data. Misleading? Well, it’s pretty common sense that many users will automate their transactions; that’s a big feature of an open, programmable financial infrastructure. And at the end of the day, even if we adjust the number down by two-thirds, then $600m volume in the last 24h is still a questionable definition of “dead”.
- okwhateverdude 3y agoLet me know when I can buy groceries with your fake money, in person, and have the transaction completed immediately. Cryptocurrencies are just three ponzi schemes in a trench coat.
- xk_id 3y agoI don’t really care about your groceries.