What is wash trading?
Short answer
Wash trading is fake volume created when the same actor (or a small set of related wallets) repeatedly buys and sells a token to itself, making it look active and in demand when it is not. It is used to climb trending boards and bait FOMO buyers.
The clearest tell is comparing volume to unique buyers: huge volume from very few wallets is wash trading. Real demand always brings many distinct new participants.
Related questions
How do I spot wash trading?
Compare volume to the unique-buyer/maker count. Big volume with few unique wallets, or ping-pong trading between related addresses, signals wash trading.
Why do projects wash trade?
To fake demand, climb trending lists, and trigger naive volume-based alerts — all to attract real buyers they can then sell to.
Is high volume always good?
No. Volume is the easiest metric to fake. Without unique-buyer growth behind it, big volume can be pure wash trading.
Reading the chart is step one. Getting pinged in real time is step two.
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Education only — not financial advice. Memecoins are extremely high risk.
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