- An unverified token on JustSwap accounted for $364 million in trade, or 91% of the DEX’s total volume.
- If a token is unverified by CoinGecko, there is negligible demand for that token to be listed and organic volumes of $360 million are unlikely.
- These tactics are a ploy to bring in more speculators and boost JustSwap’s user numbers.
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JustSwap, a Uniswap clone, recorded over $360 million of trading volume in an unknown token, raising suspicion that the exchange is rife with wash trading. This comes at a time when the largest DeFi tokens are struggling to trade over $150 million of daily volume.
Unverified Tokens, Millions of Dollars in Volume
Uniswap’s success story as a non-custodial exchange has been remarkable. With it, several clones have popped up on competing blockchains to recreate the success.
One clone includes JustSwap, a TRON-based DEX named after its founder, Justin Sun.
According to CoinGecko, JustSwap had higher volumes than Uniswap for a brief period. But this was quickly rectified as a single unverified token accounted for 91% of the exchange’s volume.
CoinGecko is a top data aggregator, so if they haven’t listed a token, it means there is very little demand from the market. Co-founder of CoinGecko, Bobby Ong, told Crypto Briefing:
“All tickers on CoinGecko are manually verified by a member of our team to ensure that we tag them correctly to the right coin. Unverified tickers means we have yet to tag them. We recently added Justswap a few weeks back and there has been some backlog.”
While not impossible, it’s highly unlikely unverified tokens can organically achieve over $50 million in daily volume. Yesterday, however, the top traded asset on JustSwap was an unverified coin with $364 million of volume. Ong said:
“They are most likely spam tokens (or tokens that have not been tracked by CoinGecko due to the lack of market interest). These tokens may not have much use and could possibly be used to…