Spotting Wash Trading Patterns in NFT Marketplaces
Repeated trades between related wallets can inflate apparent volume. Here is how we teach readers to notice patterns without accusing individual sellers.
Wash trading — buying and selling among wallets controlled by the same party to simulate demand — appears across many asset classes. On NFT marketplaces the evidence is visible because settlements settle on-chain.
Look for circular flows
Trace a token's last ten transfers. If the same handful of addresses appear in a loop, flag the pattern in your notebook. One loop is not proof of misconduct; repeated loops across a collection deserve scrutiny.
Price staircases
Small, regular increments between related wallets can manufacture a rising floor price on charts. Compare on-chain prices with listings on independent aggregators.
Timing clusters
Bursts of activity seconds apart, especially outside normal waking hours for the stated creator community, may indicate automated scripts rather than collector interest.
Stay descriptive
Our workshops emphasise describing what you observe rather than labelling intent. Share findings with caveats. Media literacy includes responsible language.
This topic forms the third hour of our workshop schedule. Educational framing only — we do not provide enforcement or legal reporting services.