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What Are the Primary Motivations for a Crypto Exchange to Tolerate or Engage in Wash Trading?

Exchanges tolerate wash trading to artificially inflate volume, attract legitimate traders, improve market ranking, and justify higher listing fees for new tokens.
Greeks.Live08.11.25

What Are the Primary Motivations for a Crypto Exchange to Tolerate or Engage in Wash Trading?

The primary motivation is to artificially inflate trading volume and perceived liquidity. Higher reported volume attracts more legitimate traders, especially institutional ones, and can improve the exchange's ranking on market data sites.

This, in turn, allows the exchange to charge higher listing fees for new tokens and attract capital, despite the manipulation.

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