As NFT owners fight everyone who call high end NFTs "Money Laundering," some idiot sells a Cryptopunk to himself for $532 million.— Darren Rovell (@darrenrovell) October 29, 2021
Calls attention to the lack of transparency and how easily markets can be rigged despite the lauding of the blockchain.
Slightly longer technical explanations here and here.
From a thread earlier this month:
And the market for these exhibits some strange behavior. We see a lot of cases where:— Stephen Diehl (@smdiehl) October 6, 2021
Person A buys an NFT for $10.
Person A sells it to Person B for $10,000.
Person B sells it to Person C for $100,000.
Person C sells it to Person D it for $10,000.
In the above scenario Person A, B, C are the same person shuffling money between anonymous accounts. And Person D is a sucker tricked by artificially fake demand.— Stephen Diehl (@smdiehl) October 6, 2021
This is known as wash trading and it's illegal in most other markets. (14/)https://t.co/kVaAwtUxGM