In today’s briefing:
- How to Spot Artificial Volume
- NFTs, Metaverse Get Digital Cold Shoulder in Beijing
How to Spot Artificial Volume
- Wash trading was at one point a pervasive problem in cryptocurrency markets.
- Today, most major exchanges have strict anti-wash trading measures, which has drastically reduced the problem since the ICO-led trading boom of 2017-18.
- Yet, due to the relatively low barriers to entry for launching an exchange, this type of market manipulation is far from eradicated on lesser-known, unregulated venues.
NFTs, Metaverse Get Digital Cold Shoulder in Beijing
- Beijing’s city market regulator has warned the public to steer clear of firms promising big returns with little risk from investments in non-fungible tokens (NFTs) and the metaverse.
- The statement is the latest indication that China’s watchdogs are unlikely to change their stance on speculative investments like NFTs, a form of digital token, anytime soon.
- The latest warning comes less than two years after China outlawed cryptocurrency trading and mining, also seeking to stamp out rampant speculative investment in virtual currencies like bitcoin and ether.
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