TechFlow News — According to Bloomberg, research firm Kaiko said that wash trading strategies used to inflate the value of NexFundAI, a token created by the FBI, remain a common practice on decentralized finance exchanges (DEX), and can also be found on certain centralized exchanges.
In a report released Thursday, Kaiko analysts stated their data shows that among more than 200,000 assets on Ethereum-based DEXs, many lack utility and are controlled by individuals. Some token issuers are creating short-term liquidity pools on Uniswap, controlling the pool's liquidity and engaging in wash trading to attract other investors. Once others enter, the issuers dump their tokens, earning up to 22 times their initial Ethereum investment within about 10 days. This analysis reveals widespread fraudulent behavior among token issuers, extending beyond the scope of the FBI’s NexFundAI investigation.
