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Non-Fungible Tokens and the Threat of Wash Trading

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F23%3A00011701" target="_blank" >RIV/46747885:24310/23:00011701 - isvavai.cz</a>

  • Result on the web

    <a href="https://drive.google.com/file/d/1wlzvkm-tOveKAn-k0uagT6RFIo6IjhIK/view" target="_blank" >https://drive.google.com/file/d/1wlzvkm-tOveKAn-k0uagT6RFIo6IjhIK/view</a>

  • DOI - Digital Object Identifier

    <a href="http://dx.doi.org/10.15240/tul/009/lef-2023-20" target="_blank" >10.15240/tul/009/lef-2023-20</a>

Alternative languages

  • Result language

    angličtina

  • Original language name

    Non-Fungible Tokens and the Threat of Wash Trading

  • Original language description

    Non-fungible tokens are a revolutionary concept that combines art, authenticity, proof of ownership and enables large-scale commerce. Their value does not come from their use in financial transactions, but from the fact that they are linked to specific assets, whether digital or real. Non-fungible tokens thus represent a new driving force in the areas of digital ownership. Owners of these tokens can earn huge sums at a time when the art market is on the verge of revolution. The non-fungible token market experienced enormous growth in 2021 with traders investing a huge amounts of billions of dollars worth of cryptocurrencies into digital collectibles. Since 2021 the transaction activity in this area cooled, although the number of active investors continued to grow in 2022. While the popularity of certain non-fungible token collectibles can fluctuate depending on market conditions, some traders may try to manipulate the prices of certain non- fungible tokens to make them appear more valuable. The token will be sold at a higher price to a new wallet, which is also controlled by the original owner. Transactions between wallet addresses are saved on a blockchain and can be accessed publicly, so that anyone can see when the token was traded and for how much it was sold. However, wallet addresses contain no identifying information making it very difficult to discern who is behind a transaction and whether two addresses are owned by the same individual. This process is called wash trading and its analysis is a goal of this contribution.

  • Czech name

  • Czech description

Classification

  • Type

    D - Article in proceedings

  • CEP classification

  • OECD FORD branch

    50206 - Finance

Result continuities

  • Project

  • Continuities

    S - Specificky vyzkum na vysokych skolach

Others

  • Publication year

    2023

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Article name in the collection

    Liberec Economic Forum 2023

  • ISBN

    978-80-7494-672-1

  • ISSN

  • e-ISSN

  • Number of pages

    8

  • Pages from-to

    179-186

  • Publisher name

    Technical University of Liberec, Studentská 1402/2, 461 17 Liberec 1, Czech Republic, Europe

  • Place of publication

    Liberec

  • Event location

    Liberec

  • Event date

    Jan 1, 2023

  • Type of event by nationality

    EUR - Evropská akce

  • UT code for WoS article

    001582505100020