Kaiko: "Defi Wash Trading is rampant... becoming a long-standing practice"

According to Bloomberg, a cryptocurrency research firm Kaiko reported that "wash trading (intentional false trading to inflate trading volume) is still rampant in DeFi platforms as if it were a long-standing practice. Wash trading activities are also still being detected in some centralized exchanges." It also stated that "some token issuers create short-term liquidity pools on the decentralized cryptocurrency exchange Uniswap (UNI) and then control the liquidity to attract investors. They then dump the tokens, earning over 22 times the profit on average. There are similar cases on centralized exchanges like HT and Poloniex. The volume-to-liquidity ratio, one of the indicators for judging wash trading, often exceeds 100 times. For example, in July this year, the meme token Pepe (PEPE) saw its volume decrease on other exchanges, but it remained high and even increased on HT."