I AGREE ITS A STOCK SCAM. THE WASHTRADING BY A COUPLE OF SMALL MM’S HAS ARTIFICIALLY INFLATED THIS STOCK SCAAAAAAAAM SHARE PRICE TO A LAUGHABLE $5M MARKET CAP. BY DOING EXACT SHARE BUYS AT EXACTING PRICE MATCHING THEY SIMPLY BUY BACK AND FORTH BETWEEN THEMSELVES TO CREATE FAKE LIQUIDITY IN AN OTC MAGIC SHELL WITH NO PRODUCT,NO REVENUE WITH ONE EMPLOYEE WORKING OUT OF A $99RENT A DESK ADDRESS. PLENTY OF SINGLE MOMS, ELDERLY & DISABLED VETS WILL BE BUYING IN ON MONDAY.
Wash trading is a form of market manipulation in which an entity simultaneously sells and buys the same financial instruments, creating a false impression of market activity without incurring market risk or changing the entity's market position. Wash trading has been deemed illegal in most jurisdictions. For instance, the United States enacted the Commodity Exchange Act (CEA) in 1936[1] to prohibit wash trading. To comply with regulations, most regulated stock exchanges have implemented protective measures, such as Self-Trade Prevention Functionality (STPF) on the Intercontinental Exchange (ICE).[2] However, in some unregulated emerging market, such as cryptocurrency,[3][4][5] the practice is common.
Various practitioners engage in wash trading for several reasons. Some examples include:
Artificially inflating trading volume to give the impression that the financial instrument is more in-demand than it actually is.[6]
Falsely driving up asset prices by fabricating trade history with increasing prices, particularly in illiquid assets.[4]
Generating commission fees to brokers as compensation for services that cannot be openly paid for, as demonstrated by some participants in the Libor scandal.[7]
Boosting trading volume to create an image of popularity (as a trading platform) to attract customers.
Several prevalent wash trading practices include:
Engaging in self-trading by placing bid/ask orders and subsequently filling them, which is particularly effective in low-liquidity assets such as non-fungible token (NFT) markets.
Utilizing multiple accounts to facilitate trades between them.
Employing automated trading algorithms for swift, large-scale execution of wash trades or blending these activities with market-making strategies.[3]
Trading platforms forging trading records in their trading history database.
See also
AI
