Green
@eleanoreleanor
Liquidity providers (LPs) in the NFT market face significant risks of hidden price manipulation due to the market's low regulation and high volatility. Practices like wash trading and fake bidding artificially inflate prices, creating false demand that can mislead LPs. Unrevealed insider trading further distorts fair pricing, exposing LPs to sudden price drops. Offer bots, bidding slightly above legitimate offers but relisting below floor prices, add to the manipulation, impacting LP returns. The lack of regulatory oversight amplifies these risks, as fraudulent activities like scams and money laundering often go undetected. LPs must carefully assess reward structures and platform reliability to mitigate potential losses from market manipulation
0 reply
0 recast
0 reaction