Some market participants alleged that Aevo's volume was recently inflated by wash trading, with some pointing to recent activity in out-of-the-money ether options as evidence.Wash trading, in which the same person acts as both buyer and seller on a trade to create a false sense of activity, is banned in conventional markets like stocks.
Daily trading volume on the decentralized crypto perpetual and options exchange Aevo recently surged from around $100 million to over $4.5 billion, only to fall back to square one in a flash.that the spike was due to wash trading, a type of market manipulation in which a trader repeatedly acts as both buyer and seller on the same transactions to create the false impression of increased activity.
Asked about the accusations, Aevo founder Julian Koh told CoinDesk:"Some users were pumping volumes to $1 billion +, to get more of our airdrop. But the snapshot was taken last week so it's not happening anymore." Protocols including Blast, Ether.Fi and EigenLayer have seen their total value locked soar lately as traders engage in something called airdrop farming – essentially parking money to get loyalty points that might get converted into potentially valuable tokens if the protocols issue them via an airdrop.
Call options give the purchaser the right, but not the obligation, to purchase the underlying asset at a predetermined price by later date. A call buyer is implicitly bullish on the market. The bet pays off only if the underlying asset rises above the strike price at which the call is bought on or before the expiry.shows that daily options volume on Aevo first crossed above the $100 million mark on Feb. 17 and rose as high as $4.56 billion on Feb.