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Growing NFT Industry Sees Signs of ‘Amiss’ Behavior, Study Shows

Aug. 26, 2021, 1:33 PM

The non-fungible token industry is continuing to grow, though there are also signs of some less-than-desirable activity, according to a study from blockchain analytics platform Nansen.

The industry “remains spotted by certain profit-seeking practices,” Nansen cautioned, citing patterns in transactions that suggest token founders might be buying up the floor for certain projects. That could be an indication of “wash trading,” a practice where a trader or group of traders buy and sell the same asset to create the illusion of heightened demand.

Read more: NFTs Supplant Rolexes and Lambos as the New Digital Savvy ‘Flex’

“While ...