SENSO Token - Fake Trading Activity on Major Exchanges
Throughout December 2020 and January 2021, SENSO token demonstrated suspiciously high and stable trade volume on Bittrex, KuCoin, and Poloniex. Observed trading patterns are consistent with wash trading.
Hourly volume on Bittrex, SENSO token, December 2020.
One of the ways in which new projects can gain recognition and adoption from users is by rising in rank on sites like CoinMarketCap. Project teams will often solicit the services of market makers who create fake activity on exchanges in order to boost the ranking of their token.
The diagram below reveals this commonly used trick to fabricate trade volume. Usually this sort of activity appears on the venue when there is one entity acting on both sides of the market - buying lower and selling higher of the same asset back and forth with themselves.
Hourly volume on KuCoin by price chage, SENSO token, January 2021.
This indicates the manipulative nature of the average transaction size across three exchanges listing SENSO token.
Average transaction size on Poloniex, Bittrex, KuCoin, SENSO token, January 2021.