Market Manipulation in NFT Markets

Non-Fungible Tokens (NFTs) offer a unique opportunity to study market misconduct in an unregulated crowdfunding environment. This paper examines insider and wash trading in the NFT market using publicly accessible Ethereum blockchain data. Results reveal that insider purchases, particularly by those maintaining community ties, significantly predict future price returns. Despite over 422 million USD circulating in wash trades, their impact on market outcomes is negligible. This paper also highlights motivations behind wash trading, such as securing marketplace rewards or promoting emerging platforms