Non-Fungible Tokens and the Threat of Wash Trading

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Non-Fungible Tokens and the Threat of Wash Trading

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Non-Fungible Tokens and the Threat of Wash Trading

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2023

Kód důvěrnosti údajů

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

Název statě ve sborníku

Liberec Economic Forum 2023

ISBN

978-80-7494-672-1

ISSN

—

e-ISSN

—

Počet stran výsledku

8

Strana od-do

179-186

Název nakladatele

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

Místo vydání

Liberec

Místo konání akce

Liberec

Datum konání akce

1. 1. 2023

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

001582505100020