People nowadays are heading towards decentralized exchanges because of their transparency and lack of custody features. These two features are mostly liked by people because they do not have to fully rely on operators.

Most centralized exchanges have a distinct type of manipulation which help them in escalating their trading volume. 
<h2>DEX Using Wash Trading To Escalate Volume</h2>
In March 2019, a report published by Bitwise highlighted this expansion for the first time. 

Bitwise, scrutinize the trading pattern on some of the platforms at that time and find that around 95 percent of the trading volume of Bitcoin reported then was fake.

Wash Trading is one of the ways which could be used to <a href="https://cointelegraph.com/news/for-some-reason-wash-trading-happens-on-decentralized-exchanges-too" target="_blank" rel="noopener">boost</a> the trading volume of exchange. In this type of trading, a single entity operates like the maker and the taker of an order.

One the one hand, there are some of the exchanges which use wash trading to boost their statistics, and on the other hand, some exchanges use incentive schemes like transaction fee to reward the users for wash trading.

Although self-custody is necessary for DEXes, blockchain-based exchanges establish transparency while being operated. 

Every trade on the decentralized exchange are recorded in a public database, so whenever any kind of misbehaviour takes place, the exchange quickly detects it.
<h2>Binance-Backed Travala Tokens Volume Have Reached High</h2>
Surprisingly, some of the DEXes in recent time are experiencing wash trading on their platform.

It is to be noted that the DEX introduced by Binance has at least a pair which helps the exchange in finding out about wash trading on its platform.

The Travala (AVA) project supported by Binance had released its token and presently it is one of the highest volume pairs for BNB token of Binance.

Bitwise in its report mentioned that it found out about the fake increasing volume of exchange after it closely went through their pattern. 

It further stated that usually, the token experiences volume spike from low volatility period to high and shows that it surges as the price of token starts strongly into a specific direction.

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Decentralized Exchange Also Allows Wash Trading On Its Platform

Wash Trading is one of the ways which could be used to boost the trading volume of an exchange, as it helps single entity to work like maker and taker.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

Decentralized Exchange Also Allows Wash Trading On Its Platform

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