Clonex floor price drops by 11% on Blur due to alleged manipulation
The past 24 hours have seen Clonex floor price drop by more than 11% on the Blur marketplace as a single wallet is spotted trading large volumes. Allegedly, the decline is a result of price manipulation.
Potential manipulation of Clonex price on Blur
The NFT world is staring at a case of price manipulation as Clonex price drops significantly on the Blur marketplace. According to Chinese reporter @WuBlockchain, the drop in Clonex price results from possible manipulation as one address 0x63e…46ee was spotted trading large volumes.
Clonex floor price has dropped by more than 11% in the last 24 hours, opening room for speculation of possible manipulation of the prices. According to Wu Blockchain, the manipulation also affects other projects such as Azuki, Beanz, BAYC, and other profitable NFT projects.
Possibility of wash trading
The fast growth of the NFT industry continues to attract positive and negative improvements. Some traders are using development to manipulate prices through aspects like wash trading.
Wash trading is a way of manipulating the NFT market by a trader or traders through inflating trade volumes by recurrently trading within themselves. The main intention is to generate a misconception of demand on a certain NFT, thus enticing other buyers.
The tactic works in favor of the involved traders while harming the unsuspecting participants in the market. Most wash trading facilitators use bots to execute quick buying and selling. However, many marketplaces forbid users from engaging in wash trading and any other form of manipulation of the markets.
Clonex price changes and high trading volumes by one address fall squarely on wash trading since most participants in price manipulation target blue chip projects which attract high numbers of trades. Therefore, projects like Clonex, BAYC, Azuki, Beanz, and Cryptopunks form the primary target of the wash traders.
Wash trading is among the ballooning problems in the NFT market, with perpetrators targeting advanced marketplaces like Blur. According to bitsCrunch reports on wash trading, the Blur marketplace witnessed increased activity on wash trading in the first two months of 2023.