The Scourge of Market Manipulation in NFT Trading: A Look at the Case of 9082D2

03/25/2023 06:18 • Metaverse & Beyond • 99 views

On March 25th, NFEX founder nfex dragon said on Twitter that a new address 9082D2 (0x90… fba9), which had been created for only six days, quickly ranked fifth on the Blur scoreboard due to price manipulation. Market manipulators similar to the 9082D2 usually bid 30-80 NFTs, and their bids will increase sharply over a short period of time, with many other bidders increasing their bids accordingly.

Founder of NFEX: A new address created in just 6 days quickly ranked fifth on the Blur scoreboard relying on price manipulation

As NFTs become more mainstream, so do the cases of market manipulation where certain individuals or groups try to manipulate the price of certain tokens for their own benefit. Recently, a new address 9082D2 made headlines when it ranked fifth on the Blur scoreboard in just six days, thanks to market manipulation. In this article, we will explore what market manipulation is, how it happens, and how you can avoid falling prey to it.

What is Market Manipulation?

Market manipulation refers to any type of action that artificially inflates or deflates the price of a financial asset, including NFTs. Common methods of market manipulation include:
– Spoofing: where a market manipulator places large fake orders with the intention of misleading other traders to adjust their bids.
– Wash trading: where an individual buys and sells the same asset repeatedly to create artificial volume and price movements.
– Pump and dump: where a group of people artificially inflate the price of an asset to attract more buyers, dump their holdings at a high price, and leave other buyers with worthless tokens.

How Does Market Manipulation Happen in NFT Trading?

In the case of 9082D2, market manipulators submitted bids for 30-80 NFTs, which caused the price to rise steadily over a short period of time. Other bidders then followed suit and increased their bids, further driving up the price. This created a false sense of market demand and attracted even more bidders, eventually leading to 9082D2 ranking fifth on the Blur scoreboard.
To prevent falling prey to market manipulation, it is essential to conduct thorough research on the token or project before investing. Additionally, it is important to pay close attention to price movements and bid volumes to avoid getting caught up in a market frenzy.

How to Identify Market Manipulation?

There is no definitive way to identify market manipulation, but there are a few red flags to look out for:
– Sharp and sudden price or volume movements without any concrete news or events to justify the change.
– Bid volumes that are unrealistically high compared to historical volumes.
– A lack of diversity in the token’s bid books or ownership. Manipulators often hold a disproportionate amount of the asset in question.

Conclusion

Market manipulation is a serious concern for NFT traders, and it is essential to take proactive measures to avoid falling prey to it. Conduct thorough research, pay attention to bid volumes and price movements, and look for red flags that may indicate market manipulation. By following these tips, you can protect yourself and your investments from malicious market manipulators.

FAQs

1. How can I tell if a token is being manipulated?
– Look for sharp and sudden price movements, unrealistically high bid volumes, and a lack of diversity in the token’s bid books or ownership.
2. Can market manipulation be prevented?
– While there is no guaranteed way to prevent market manipulation, conducting thorough research and paying close attention to price movements and bid volumes can help reduce the risk of falling prey to it.
3. What should I do if I suspect market manipulation?
– Contact the NFT marketplace or exchange where the token is traded and report your suspicions. They may have policies and procedures in place to investigate potential market manipulation.

#

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/metaverse/11899.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.