“Billionaire Investor Mark Cuban Predicts Crypto Wash Trading on Centralized Exchanges Will Cause Next Industry Implosion”
Dallas Mavericks owner and crypto investor, Mark Cuban, has warned that wash trading on centralized exchanges will be the cause of the next crypto “implosion.” In an interview with The Street, Cuban stated that he believes the discovery and removal of wash trades on central exchanges will be the biggest issue to impact the industry in the near future. Wash trading, which is illegal in the US, involves the buying and selling of the same asset in order to manipulate market information and inflate volumes. A December report by the National Bureau of Economic Research estimated that up to 70% of the volume on unregulated exchanges is wash trading, while a 2022 study by Forbes found that over half of Bitcoin trade volumes on centralized exchanges were fake.
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