<story><title>Crypto Wash Trading</title><url>https://arxiv.org/abs/2108.10984</url></story><parent_chain><item><author>Zamicol</author><text>This is why Uniswap&amp;#x27;s data is much more valuable than  centralized exchanges.  On-chain trading permits a degree of transparency and trustworthiness not readily feasible with centralized exchanges.&lt;p&gt;Centralized exchanges are incentivized to doctor their data and lie about their volumes.  The larger the volumes an exchange publishes, even if fake or gamed, the more relevant an exchange appears.  Users must blindly trust whatever data exchanges can manufacture.&lt;p&gt;Uniswap charges a flat fee to every trade for all user.  It&amp;#x27;s objective.  There&amp;#x27;s no special back room trading rates, there&amp;#x27;s no ability to lie about volumes, there&amp;#x27;s no bonus for having high frequency bots trading.  If you want objective data, Uniswap (and other on-chain exchanges) are truthful.</text></item></parent_chain><comment><author>capableweb</author><text>I&amp;#x27;m generally pro-cryptocurrencies, but Uniswap definitly makes it harder to see wash trading, not easier. One wallet !== one person, while the regulated, centralized exchanges normally require you to answer bunch of questions and prove your identity because of KYC&amp;#x2F;AML laws, to guarantee that each participant is just that, one participant.</text></comment>
<story><title>Crypto Wash Trading</title><url>https://arxiv.org/abs/2108.10984</url></story><parent_chain><item><author>Zamicol</author><text>This is why Uniswap&amp;#x27;s data is much more valuable than  centralized exchanges.  On-chain trading permits a degree of transparency and trustworthiness not readily feasible with centralized exchanges.&lt;p&gt;Centralized exchanges are incentivized to doctor their data and lie about their volumes.  The larger the volumes an exchange publishes, even if fake or gamed, the more relevant an exchange appears.  Users must blindly trust whatever data exchanges can manufacture.&lt;p&gt;Uniswap charges a flat fee to every trade for all user.  It&amp;#x27;s objective.  There&amp;#x27;s no special back room trading rates, there&amp;#x27;s no ability to lie about volumes, there&amp;#x27;s no bonus for having high frequency bots trading.  If you want objective data, Uniswap (and other on-chain exchanges) are truthful.</text></item></parent_chain><comment><author>teitoklien</author><text>.... People pay for volume on uniswap daily ...
They just spin up new wallets and keep making them exchange very high amounts of a token (10ETH buy , 10 ETH sell , multiple times) (net expense is just the gas fees, but they get paid wayyy more to do this).&lt;p&gt;This is usually done to get uniswap traded tokens onto various trending lists like cmc , dextools , etc.&lt;p&gt;I’d say there is 10-40x the fraud on uniswap than on centralised exchanges, its just that on uniswap if you know where to look, you can transparently see the fake volume being created in front of you.&lt;p&gt;But for human traders, it can be tricky sometimes.</text></comment>