Washtrade Analytics

This section gives an overview of washtrading methods applied by traders, how to calculate metrics and how to use our API.

What is Washtrade?

Washtrading refers to an activity where one or more traders have schemed to create an artificial demand for security by purchasing and selling it multiple times. This results in traders and investors paying more for a security than what it is worth. In NFTs, this fraudulent activity affects both the price and volume of an NFT project, resulting in marketplaces no longer having reliable metrics for determining the growth and reach of their platforms.

Different washtrade patterns:

While there are various kinds of washtrading patterns seen in NFT marketplaces, we categorised them into the following types:

Pattern A: It is one of the most commonly found patterns where an asset will be traded back and forth within the same set of wallets a number of times. Sometimes multiple wallets are involved as a group to conduct washtrading.
Pattern B: Alternatively, a combination of wallets are seen involved in trading different assets from different collections from a single marketplace just for collecting rewards.
Pattern C: Under this pattern, certain wallets follow the same pattern of sales on a weekly or daily basis.

There are many more similar dubious patterns, like the ones mentioned above, that are considered as washtrading. Below, we have explained some of the washtrading patterns for your ease:

Washtrade Metrics:

we can get the results under different washtrade metrics for each apis. The washtrade metrics are explained as follows:

Metrics	Metric Unit	Description
washtrade_assets	count	The number of nfts that have been washtraded
washtrade_assets_change	pct	The change in the number of Washtraded assets within the particular time range
suspect_sales_ratio	pct	The percentage of sales suspected of washtrading to the total transactions that has happened on that particular time period.
Washtrade_wallets	Count	Number of wash traded wallets

You can find the description of more wash trading metrics in the specs document. These metrics are calculated daily and values included here are calculated every 24 hours.

Exclude washtrade:

Washtrading comprehends the exact analysis of collections in different marketplaces from forged transactions by exclude washtrade option. Exclude Washtrade will help to be conscious of the real market while trading in NFTs and to choose the collection and marketplaces which are free from fraudsters.

The below sample snippet gives an idea of how to get results with and without washtrade.

curl --request GET \
     --url 'https://api.unleashnfts.com/api/v1/nft/1/0xbc4ca0eda7647a8ab7c2061c2e118a18a936f13d/7537/trend?currency=usd&metrics=volume&metrics=washtrade\_volume&time\_range=all&time\_range\_start=2022-07-01&time\_range\_end=2022-11-01&include\_washtrade=false \
     --header 'accept: application/json' \
     --header 'x-api-key: your API key'

Washtrade can be excluded from different mains like marketplace, collection, nft trend by giving ‘true’ as to ‘include_washtrade’ under Query Params section.

curl --request GET \
     --url 'https://api.unleashnfts.com/api/v1/nft/1/0xbc4ca0eda7647a8ab7c2061c2e118a18a936f13d/7537/trend?currency=usd&metrics=volume&metrics=washtrade\_volume&time\_range=all&time\_range\_start=2022-07-01&time\_range\_end=2022-11-01&include\_washtrade=true \
     --header 'accept: application/json' \
     --header 'x-api-key: your API key'

Washtrade Metrics for Marketplaces

Marketplace API gives the washtrade metrics which is used to get the results of the overall washtrade analytics in the marketplace-wise. Basic details of how to give parameters to the API can be obtained from the linkhttps://docs.unleashnfts.com/docs/getting-started#bhow-to-get-the-nft-market-reportb

Below is a sample of wash trade metrics of the LooksRare marketplace.

curl --request GET \
     --url 'https://api.unleashnfts.com/api/v1/marketplaces?currency=usd&blockchain=1&metrics=washtrade\_assets&metrics=washtrade\_assets\_change&metrics=washtrade\_suspect\_sales&metrics=washtrade\_suspect\_sales\_change&metrics=washtrade\_volume&metrics=washtrade\_volume\_change&metrics=washtrade\_wallets&metrics=washtrade\_wallets\_change&sort\_by=washtrade\_level&sort\_order=desc&offset=0&limit=30&time\_range=24h&include\_washtrade=true \
     --header 'accept: application/json' \
     --header 'x-api-key: your API key'

Response:

{
    "metadata": {
        "id": "looksrare",
        "name": "looksrare",
        "url": "https://looksrare.org/",
        "thumbnail\_url": "https://docs.looksrare.org/assets/images/looks-icon-dimensions-01f7a3a1ddcfacfb5af647b4ff8d9fb5.png"
    },
    "metric\_values": {
        "washtrade\_assets": {
            "value": 12,
            "unit": "count"
        },
        "washtrade\_assets\_change": {
            "value": 1100,
            "unit": "pct"
        },
        "washtrade\_suspect\_sales": {
            "value": 12,
            "unit": "count"
        },
        "washtrade\_suspect\_sales\_change": {
            "value": 1100,
            "unit": "pct"
        },
        "washtrade\_volume": {
            "value": "16574.947",
            "unit": "usd"
        },
        "washtrade\_volume\_change": {
            "value": 4484.135,
            "unit": "pct"
        },
        "washtrade\_wallets": {
            "value": 15,
            "unit": "count"
        },
        "washtrade\_wallets\_change": {
            "value": 6.5,
            "unit": "pct"
        }
    }
},

This response helps to understand the severity of washtrading activities in the marketplace. It can be obtained in different time ranges, thus helping in gauging the washtrading activity change in the different time periods.

*Note: The values shown above were taken within 24 hours time duration.

Washtrading metrics is especially crucial for new NFT investors who are looking to choose the safest marketplace.

Washtrade Metrics for Collection:

Washtrading-related metrics for individual NFT collections can be obtained under https://docs.unleashnfts.com/reference/get_collections API. Blockchain and contract address are the required parameters. *Metrics** will vary on a daily basis.

Below is an example on how to obtain washtrading level for collections supported by UNLEASHNFTS API for a selected period of time on a daily basis. This API gives the detailed analysis of the washtrades that have happened in a specific collection in a given time period.

curl --request GET \
     --url 'https://api.unleashnfts.com/api/v1/collection/1/0xbc4ca0eda7647a8ab7c2061c2e118a18a936f13d/trend?currency=usd&metrics=washtrade\_wallets&metrics=washtrade\_assets&metrics=washtrade\_suspect\_sales&metrics=washtrade\_volume&metrics=washtrade\_suspect\_sales\_change&time\_range=30d&time\_range\_start=2022-10-01&time\_range\_end=2022-11-01&include\_washtrade=true \
     --header 'accept: application/json' \
     --header 'x-api-key: your API key'


{

    "data_points": [{
        "date": "2022-12-05T00:00:00.000Z",
        "values": {
            "washtrade_wallets": 2,
            "washtrade_assets": 2,
            "washtrade_suspect_sales": 4,
            "washtrade_volume": 12.859311265707056,
            "washtrade_suspect_sales_change": 100
        }
    },
    {
        "date": "2022-12-04T00:00:00.000Z",
        "values": {
            "washtrade_wallets": "NA",
            "washtrade_assets": "NA",
            "washtrade_suspect_sales": "NA",
            "washtrade_volume": "NA",
            "washtrade_suspect_sales_change": "NA"
        }
    },
    {
        "date": "2022-12-03T00:00:00.000Z",
        "values": {
            "washtrade_wallets": "NA",
            "washtrade_assets": "NA",
            "washtrade_suspect_sales": "NA",
            "washtrade_volume": "NA",
            "washtrade_suspect_sales_change": "NA"
        }
    }]
}

The importance of the washtrading index level is to forewarn the individuals about the risk of investing in a particular collection/markeplace/NFT.

Washtrade Metrics for NFT:

Below is an example for getting washtrading details of a NFT from the ENS collection via NFT metrics API.

curl --request GET \
     --url 'https://api.unleashnfts.com/api/v1/nft/1/0x57f1887a8bf19b14fc0df6fd9b2acc9af147ea85/112733236202375515329620934558226606576883582034059565366975305077048072524487/metrics?currency=usd&metrics=washtrade\_wallets&metrics=holders&metrics=washtrade\_suspect\_sales&metrics=volume&metrics=sales&time\_range=all&include\_washtrade=true \
     --header 'accept: application/json' \
     --header 'x-api-key: your API key'


RESPONSE

{

    "metric_values": {
        "washtrade_wallets": {
            "value": 0,
            "unit": "count"
        },
        "holders": {
            "value": 1,
            "unit": "count"
        },
        "washtrade_suspect_sales": {
            "value": 0,
            "unit": "count"
        },
        "volume": {
            "value": "8.772874",
            "unit": "usd"
        },
        "sales": {
            "value": 1,
            "unit": "count"
            }
        }
    }
}

API Response gives an idea of how much volume is impacted by washtrading on an NFT. NFT level washtrading data helps in understanding the activities happening across the space.