The author's blockchain audit company translated Shanouba Bitcoin Trading Network. Cleaning transactions has become a prominent problem among hundreds of problems related to centralized cryptocurrency exchanges. wash sale trading refers to someone selling something to himself to increase demand or make the market look more active. This deceptive practice may be driven by many motives, such as attracting liquidity and customers artificially creating demand for irreplaceable tokens or participating in tax losses. The main goal is to create trading volume. A higher illusion may attract legitimate trading activities. This deceptive strategy misleads investors to believe that the demand for assets is more important than the actual situation. According to American law, cleaning transactions is considered illegal because it undermines the integrity of the financial market. In addition, the IRS prohibits taxpayers from deducting the losses caused by wash sale transactions, thus increasing the economic inhibition on this illegal behavior. In essence, cleaning transactions damage market transparency and bring legal and financial consequences to participants. It's just a formal overview of this illegal activity. Now let's discuss what is the cleaning transaction in cryptocurrency and how traders can identify this kind of activity and avoid potential losses. It is a deceptive behavior that companies or entities use self-trading to create artificial effects in the market. The director of regulatory affairs emphasizes its purpose of raising prices, creating the illusion of liquidity and attracting the interest of other investors. This manipulation may mislead investors to buy tokens at artificially high prices. Cleaning transactions that constitute fraud and market manipulation are not only aimed at individual wrongdoers, but even cryptocurrency exchanges may adopt this strategy. Exchanges may carry out cleaning transactions to exaggerate their trading volume to make them look more active and more liquid than they actually are. Timo Thikra del stressed that this practice is unreasonable and that industry competition cannot be an excuse for wash sale to trade. Transparency, especially in the cryptocurrency field, which is crucial for trust, is conducive to fostering health and trustworthiness. The market environment is very important. How does the cleaning transaction in cryptocurrency work? Imagine that you are in a crowded market. Everyone is looking at the most popular goods. The trading volume in the cryptoworld is just like the popularity of digital currency. Cleaning traders focus on making a specific cryptocurrency look more popular than it really is. They do this by buying and selling the same currency quickly, creating false trading volume. This artificial popularity can attract others who think that the token is in great demand. Investors imagine that you have a bag of candy and you trade it back and forth with yourself quickly. They seem to have a lot of trading activities. Because the trading volume will affect the price of tokens, your bag of candy now looks more valuable, but this is the tricky part. Others see the high cost and think that the coins are hot, but when you decide to sell your tokens, the price will collapse because it is all fake activities. Now other buyers can't sell their tokens because there are no real buyers. Simply put, wash sale trading. It's like pretending that a toy is very popular, deceiving others to buy it at a high price, and then suddenly showing no real interest, leading to a decline in value. How common are cleaning transactions in cryptocurrency? The complexity of cleaning transactions varies from simple transactions between wallets to more complicated plans. The research director identifies cleaning transactions according to the specific relationship between wallets and addresses, indicating potential fraudulent activities. The research of the National Bureau of Economic Research has deeply studied the false transactions of a cryptocurrency exchange. The prevalence situation is divided into two types: supervised and unregulated. The research shows that the supervised exchanges rarely have shuffling transactions, while the unregulated exchanges, especially the secondary exchanges, have an average transaction volume due to shuffling transactions. Qian' an is the largest cryptocurrency exchange in the world. In the study, it is estimated that its transactions are attributed to wash sale transactions. However, a spokesman for Qian' an strongly denied participating in wash sale transactions and stressed that there is a special market monitoring team to monitor and prevent them. It is reported that all transactions of another well-known exchange are classified as wash sale transactions, although the exchange denies participating in such behaviors. The paper also points out that the incidence of dishwashing transactions is higher after positive returns or market volatility declines, which shows that the exchange has the motivation to exaggerate the trading volume in these periods to attract attention and customers. However, it is challenging to identify the cleansing transactions without access to the account data usually held exclusively by the exchange. Product experts of digital assets emphasized industry supervision. Despite the importance of maintaining the integrity and transparency of the encryption market, as proved by the research results, now that we have introduced the basic knowledge of cleaning transactions in the cryptocurrency world, let's discuss how it is specially applied to cleaning transactions, although the principle is similar, but its unique nature has brought some differences in the way of cleaning transactions, which is different from the alternative tokens with clear trading volume, but the trading volume is lower because of its uniqueness, which also makes it easier to track their actions. Easy to add, however, those who are malicious can still try to hide the cleaning transaction, especially in the early stage. Imagine encountering a new project shortly after its release. You will notice that the price of a specific token is significantly higher than that of other tokens, despite its similar functions. Further investigation shows that the same sales volume has increased in the past hour and the token has changed hands between seemingly different individuals. Is this a cleaning transaction unnecessary? Celebrities may recognize the token, thus increasing interest and authenticity. However, it is very important to handle such situations carefully. It is best to be vigilant and avoid suspicious situations to protect yourself from potential losses. The following is an example of cleaning transactions in the cryptocurrency world. Mentougou was once the world's largest bitcoin exchange, but it closed down in 2000, causing users to lose hundreds of millions of dollars worth of bitcoin cleaning transactions. It was found that it was one of the unethical behaviors adopted, which led to the artificial inflation of bitcoin prices on its platform. The case is still a cryptocurrency exchange. One of the most notorious events in history and the accusation by the Attorney General's Office of new york that the stable currency used has artificially inflated the price of bitcoin and other cryptocurrencies has created a false sense of demand. The ongoing case highlights the legal consequences that the exchange may face because of the cleansing transaction. Why do people participate in this illegal activity? People engage in cryptocurrency cleansing transactions mainly for quick profit without considering moral or legal impact. However, another aspect related to taxation has prompted some people to explore the cleansing transaction strategy. During the cleansing transaction, traders may be deliberately subjected to it. 比特币今日价格行情网_okx交易所app_永续合约_比特币怎么买卖交易_虚拟币交易所平台

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