Daily feed｜[Beginners must read] Henry Zhang’s highest NFT transaction price exceeds one million? Tell you what "Virtual Trading Wash Trading" is!

NFT transactions will explode after 2021. The transaction volume of the famous NFT series BAYC Boring Ape Club has exceeded 650K ETH so far. Although NFT has entered a cold winter since April, the number of NFT transactions is still high.

Here, I will revisit several basic indicators for investing in NFT:

1. Floor price (minimum entry price), also represents the lowest price you ship
2. Trading volume, I sell my monkey for 10ETH, and the other party buys it, then the trading volume will increase by 10ETH
3. The holder ratio is how many on average each person owns. 50% means that each person holds an average of two, and 100% means that each person holds one.

When Henry Zhang NFT was launched a while ago, there was a 100E transaction in the secondary market, which means that someone bought it with over one million Hong Kong dollars. At that time, the public sale price was 2,500 yuan. Even if it is rare, it is impossible to have such a ridiculous transaction. Therefore, everyone laughed at him for being left-handed and right-handed.

That company obviously wants to brush up on the transaction volume and make the data look better. Everyone has less concerns when they enter the market, but they forget that this is a blockchain. Playing a hat trick from God's perspective will only make the joke more funny.

However, wash trading is not as easy to spot as you might think. Because a person can hold a large number of wallet addresses, not only the left and right hands, but also the thousand-handed Guanyin, it is difficult to trace whether it is Wash Trading.

Back in 2021, CryptoPunk #9998 was transacted between the two wallets for 124,457 Ether (ETH), worth about $532 million at the time.

At the time, the buyer paid CryptoPunk's smart contract 124,457 ETH using flash loans from multiple sources, which were then transferred to the seller's wallet. The seller then returned 124,457 ETH to the buyer, who repaid the loan.

These complex gameplays are usually difficult for ordinary people to discover, and they do not have so much time to trace them carefully. So what strategy should we adopt?

Here I will give you a "safety tip for lazy people":

1. Looking at the holder ratio, NFTs with a low ratio have great opportunities for trading and are very easy to be hit.
2. Take a look at the latest information on the project, and pay special attention to the large number of frequent transactions in the absence of positive factors.
3. Looking at the historical transactions of the NFT, if the same person often appears, it is very suspicious.
4. Look at the transaction address, if it is very new, then be careful, the moisture is very heavy.
5. If you play small projects/local dog projects, you should buy big and small projects. The chaos of large projects is less, and the real investment should be in large projects. So why is Henry Zhang NFT playing Wash Trading is self-depreciating.

In the end, many people only look at the buying and selling prices, but here I re-emphasize that the most important thing in any NFT transaction is not its floor price, but the transaction volume. I think the current NFT market is worse than two months ago, mainly because Because of low trading volume, it is easy to fall into a death spiral.

/It is not easy to write without interruption every day, and I invite everyone to help us. Like + Share + Comment❤️

//Also remember to subscribe to the post on IG 🔔🥰

IG: @myttt.eth