Aster Faces Wash Trading Allegations as Volume Surges

🚨 Aster Faces Wash Trading Allegations: Was Volume Inflated to Mislead Investors? 🔥

English version: x.com19724701719202…

@dethective has published an analysis alleging possible wash trading on Aster and examining whether its trading volume was artificially inflated. Wash trading involves rapidly buying and selling the same asset to inflate volume; the analysis suggests this may have occurred on Aster.

🔍 What is wash trading?

Put simply, it involves repeatedly buying and selling an asset to artificially increase trading volume. An exchange may want to display higher volume, while users may be motivated to trade by airdrops or points.

The main parties that may have an interest in wash trading are:

• Exchanges, which can display more attractive volume figures
• Users, who may seek airdrops or points

📉 What did @dethective’s analysis find?

@dethective used two simple methods to estimate wash trading on Aster:

Consecutive buys and sells of the same size: for example, buying 1 BTC and immediately selling 1 BTC.

The results:

• Total trading volume: approximately $42 billion
• Estimated share of volume that may have been wash trading: approximately 6%
• The BTC market had the highest estimated share.

🧐 Why focus on the top trading pairs?

According to the analysis, BTC, ETH, BNB, ASTER and SOL account for 98% of Aster’s trading volume. @dethective therefore focused on the top pairs, which represent most of the exchange’s activity, to arrive at a more accurate result.

🚨 The volume surge and the questions it raises

A sharp rise in trading volume

Aster’s daily trading volume recently increased twentyfold in seven days, jumping from $1 billion to $20 billion between September 16 and 23. The increase raises questions in itself. Compared with other platforms such as Hyperliquid, Aster’s surge appears more likely to reflect artificial manipulation than organic growth.

Allegations of wash trading and liquidity manipulation

• Large transfers and wash trading: There were recently 156 transfers of more than $10 million each, with an average transfer size of $45.2 million. The analysis suggests coordinated activity between the exchange and unidentified wallets.
• Unusual fee structure: Aster’s daily fee revenue was $12.03 million, equivalent to approximately 0.55% of TVL. That is 14 times higher than Hyperliquid’s figure and may largely have come from circular wash trading.

Although @dethective’s investigation began as a response to being blocked by CZ, it ultimately raised an important question: whether wash trading has artificially inflated volume on Aster.

📌 Criticism from industry figures

Simon Dedic’s analysis

Simon Dedic, founder of Mooonrock Capital, criticized Aster for following what he described as a typical multilevel investment fraud strategy. He argued that Aster’s product merely copies existing successful models and that it attracts investors by distributing tokens to insiders and inflating volume through wash trading.

Joshua Tobkin’s technical criticism

Joshua Tobkin, co-founder of Supra, criticized Aster for operating like a centralized exchange (CEX) and for a lack of transparency around its matching engine. He argued that this opacity makes it difficult for users to trust how the system works.

💬 Conclusion

The wash trading allegations against Aster suggest issues beyond inflated volume alone. The rapid increase in trading activity, suspicious large transfers and unusual fee revenue could all be connected to wash trading. Industry figures have also criticized the exchange’s operations and structure.

It is time to reconsider the exchange’s reliability. If Aster used such methods to inflate volume, the impact on investors could be greater than imagined.

💡 Key points

• Wash trading: rapidly buying and selling the same asset to inflate volume
• Aster: approximately 6% of total volume was estimated to be potentially linked to wash trading
• Industry figures have raised concerns about possible multilevel investment fraud and a lack of transparency at the exchange

This post adapts material from the sources below to make it easier for subscribers to understand.

Sources:
x.comdethective
www.bitget.com12560604988562
www.odaily.news5206577

For informational purposes only. Not financial advice. Invest at your own risk.

This material is for informational purposes and does not constitute investment advice. You are responsible for your own investment decisions.