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Crypto wash trading — Ben McKenzie doc on fake volume and pump schemes
100k ft — What is this?
Crypto wash trading — Ben McKenzie doc on fake volume and pump schemes
50k ft — Why care?
Clip from the documentary 'Everyone Is Lying to You for Money' where an insider explains wash trading: one actor trading between two accounts to walk prices up, luring outsiders before dumping. The interviewee claims 90-95% of crypto volume is fake and fewer than 20 people control the market.
10k ft — Key takeaways
• Discount reported crypto volume heavily
• Rising price on high volume can be one actor trading with themselves
• The 90-95% fake figure is an interviewee claim, not audited data
5k ft — Tools & techniques
(no tools tagged)
algorithmic trading, wash trading
1k ft — Deep-dive / try it
Ben McKenzie’s documentary looks at who is paying the price for cryptocurrency’s rise in popularity
🎞️: Everyone Is Lying to You for Money | @mrbenmckenzie
Transcript excerpt
this is bad, this is fraud. Why do you think that is? I personally believe the entire market is really controlled by fewer than 20 people. And they can make the price go to whatever they want. How? Let's say you have two accounts and you want the price to go up. So all you do is trade between your two accounts and you can basically just walk the price up. So they control both sides of the trade? Right, and then someone else that's on the outside doesn't realize and they see the price is going up, it's gone up 15% in the past 15 minutes, and they go ahead and they buy in. Those are the suckers basically coming in. Not realizing that it was just one guy with two accounts making the price go up. Right. Between 90 and 95% of all the crypto trading, that's all it is. Now the other 5% is only in there because they think that the other 90 to 95% is in real, which it's not. So now the people pumping up the price can sell their tokens and everybody else gets screwed. Yes, that's it.