Published: 05.04.2022
Article reading time:
2 minutes.
The Cryptoslam analytics platform has published data on the service for trading non-fungible tokens, LooksRare, launched in January by two anonymous co-founders.
Representatives of a platform specializing in the analysis of the NFT market told Bloomberg that 95% of the total volume of deals of $18 billion on LooksRare are fake.
LooksRare quickly competed with the most popular NFT platform OpenSea in winter. However, traders, although they really make transactions to sell tokens, are, in fact, selling NFTs to themselves, Cryptoslam analysts say. Such trading can increase interest in the token and its value in the eyes of other collectors.
In addition, these fictitious trades have helped maintain interest in the entire NFT space. However, the boom of collectible tokens still began to fade. Trading volumes on the OpenSea platform have been falling since January and have fallen by 67% in the past month.
“I don’t care if it’s stocks, bonds, bitcoin, NFTs or baseball cards. Volume falsification is a form of market manipulation in which an investor simultaneously sells and buys the same instrument to create artificial activity in the market,” criticized LooksRare American lawyer David Silver, who deals with cases related to cryptocurrencies.
The lawyer emphasized that falsifying 95% of the trading volume puts the LooksRare platform outside the law and can lead to serious consequences.
Regulators are increasingly paying attention to NFTs. In early March, the US Securities and Exchange Commission (SEC) began to investigate this industry for illegal ICOs.
Source: Bits
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