# Wash Trading

> Buying and selling the same asset between connected accounts to fake trading volume.

Canonical URL: https://fudfomo.co/glossary/wash-trading
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

Wash trading is when one party buys and sells the same asset between accounts they control. The result is high reported volume that does not reflect real demand.

Wash trading has been a problem on smaller exchanges and in NFT markets, where it can be used to make a token or collection look more popular than it is. Several regulators have brought enforcement actions for wash trading in crypto.

## Regulatory context

Wash trading is illegal in regulated markets and is increasingly being prosecuted in crypto, including in NFT markets.

## Related terms

- [Market Cap](https://fudfomo.co/glossary/market-cap): The current price of a coin multiplied by how many are in circulation. A rough size measure.
- [CEX](https://fudfomo.co/glossary/cex): A centralised exchange. A regulated platform where you buy and sell crypto using an account.
- [NFT](https://fudfomo.co/glossary/nft): A token that represents ownership of a unique item, like a piece of digital art or a ticket.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co