re: An NFT of Jack Dorsey's first tweet bought for $2.9M is now valued at less than $4

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Some NFTs actually sell for alot but I think there's alot of fake sales also.

If I sell a NFT to myself for 10k you'll think you're getting a steal when you see me list it for 5k

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A report from the National Bureau of Economic Research in the US, published in December 2022, found that illegal wash trading may account for almost three quarters (over 70%) of average trading volumes on unregulated exchanges.

Researchers from Cornell University in the US, Newcastle University in the UK and Tsinghua University in China conducted systematic tests exploiting robust statistical and behavioural patterns in trading to detect fake transactions on 29 cryptocurrency exchanges.

These fabricated volumes, effectively the result of firms (and exchanges) illegally trading with themselves, can amount to trillions of dollars annually. The fraudulent practice can offer a false impression of liquidity, resulting in an improved (but inaccurate) exchange ranking, as well as temporarily distorting prices.

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