Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
skip to main content
10.1145/3589335.3651580acmconferencesArticle/Chapter ViewAbstractPublication PagesthewebconfConference Proceedingsconference-collections
short-paper

Unveiling Wash Trading in Popular NFT Markets

Published: 13 May 2024 Publication History

Abstract

As emerging digital assets, NFTs are susceptible to anomalous trading behaviors due to the lack of stringent regulatory mechanisms, potentially causing economic losses. In this paper, we conduct the first systematic analysis of four non-fungible tokens (NFT) markets. Specifically, we analyze more than 25 million transactions within these markets, to explore the evolution of wash trade activities. Furthermore, we propose a heuristic algorithm that integrates the network characteristics of transactions with behavioral analysis, to detect wash trading activities in NFT markets. Our findings indicate that NFT markets with incentivized structures exhibit higher proportions of wash trading volume compared to those without incentives. Notably, the LooksRare and X2Y2 markets are detected with wash trading volume proportions as high as 94.5% and 84.2%, respectively.

Supplemental Material

MP4 File
Supplemental video

References

[1]
Looksrare rewards. https://looksrare.org/zh-Hans/rewards, 2022.
[2]
X2y2 rewards. https://docs.x2y2.io/tokens/rewards/trading-rewards, 2023.
[3]
Vitalik Buterin et al. A next-generation smart contract and decentralized application platform. 3(37):2--1, 2014.
[4]
Shijian Chen, Jiachi Chen, Jiangshan Yu, Xiapu Luo, Yanlin Wang, and Zibin Zheng. The dark side of nfts: A large-scale empirical study of wash trading. arXiv preprint arXiv:2312.12544, 2023.
[5]
Wei Cui and Cunnian Gao. Wteye: On-chain wash trade detection and quantification for erc20 cryptocurrencies. Blockchain: Research and Applications, 4(1): 100108, 2023.
[6]
Dipanjan Das, Priyanka Bose, Nicola Ruaro, Christopher Kruegel, and Giovanni Vigna. Understanding security issues in the nft ecosystem. In Proceedings of the ACM SIGSAC Conference on Computer and Communications Security, pages 667--681, 2022.
[7]
Joshua AT Fairfield. Tokenized: The law of non-fungible tokens and unique digital property. 97:1261, 2022.
[8]
Infura. Infura github repository. https://github.com/INFURA/infura, 2023.
[9]
LooksRare. Trading rewards. https://docs.looksrare.org/about/rewards/tradingrewards# how-do-trading-rewards-work, 2023.
[10]
S Nakamoto. Nakamoto, s, bitcoin: A peer-to-peer electronic cash system, 2009.
[11]
Sven Serneels. Detecting wash trading for nonfungible tokens. Finance Research Letters, 52:103374, 2023.
[12]
Mingxiao Song, Yunsong Liu, Agam Shah, and Sudheer Chava. Abnormal trading detection in the nft market. arXiv preprint arXiv:2306.04643, 2023.
[13]
Friedhelm Victor and Andrea Marie Weintraud. Detecting and quantifying wash trading on decentralized cryptocurrency exchanges. In Proceedings of the Web Conference, pages 23--32, 2021.
[14]
Victor vonWachter, Johannes Rude Jensen, Ferdinand Regner, and Omri Ross. Nft wash trading: Quantifying suspicious behaviour in nft markets. arXiv preprint arXiv:03866, 2022.
[15]
Xiaolin Wen, Yong Wang, Xuanwu Yue, Feida Zhu, and Min Zhu. Nftdisk: Visual detection of wash trading in nft markets. In Proceedings of the CHI Conference on Human Factors in Computing Systems, pages 1--15, 2023.

Cited By

View all
  • (2024)Dutch Auction Dynamics in Non-fungible Token (NFT) MarketsSSRN Electronic Journal10.2139/ssrn.4546638Online publication date: 2024
  • (2024)Dutch auction dynamics in non-fungible token (NFT) marketsEconomic Modelling10.1016/j.econmod.2024.106882(106882)Online publication date: Sep-2024

Recommendations

Comments

Information & Contributors

Information

Published In

cover image ACM Conferences
WWW '24: Companion Proceedings of the ACM Web Conference 2024
May 2024
1928 pages
ISBN:9798400701726
DOI:10.1145/3589335
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than the author(s) must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected].

Sponsors

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 13 May 2024

Permissions

Request permissions for this article.

Check for updates

Badges

Author Tags

  1. blockchain
  2. nft
  3. wash trading

Qualifiers

  • Short-paper

Funding Sources

Conference

WWW '24
Sponsor:
WWW '24: The ACM Web Conference 2024
May 13 - 17, 2024
Singapore, Singapore

Acceptance Rates

Overall Acceptance Rate 1,899 of 8,196 submissions, 23%

Contributors

Other Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

  • Downloads (Last 12 months)90
  • Downloads (Last 6 weeks)10
Reflects downloads up to 14 Jan 2025

Other Metrics

Citations

Cited By

View all
  • (2024)Dutch Auction Dynamics in Non-fungible Token (NFT) MarketsSSRN Electronic Journal10.2139/ssrn.4546638Online publication date: 2024
  • (2024)Dutch auction dynamics in non-fungible token (NFT) marketsEconomic Modelling10.1016/j.econmod.2024.106882(106882)Online publication date: Sep-2024

View Options

Login options

View options

PDF

View or Download as a PDF file.

PDF

eReader

View online with eReader.

eReader

Media

Figures

Other

Tables

Share

Share

Share this Publication link

Share on social media