Crypto trading platform Bybit has disqualified one of the leading teams from their annual World Series of Trading (WSOT) 2023 competition. While the exchange cited rule violations as the reason for the decision, the team allegedly engaged in “wash trading” that led to their expulsion.
Wash trading is the simultaneous purchase and sell orders placed on the same asset. This gives the appearance of more trade activity, which is misleading.
Top Team Out of WSOT Competition
Bybit’s disqualification of the top-ranking team is particularly significant given the magnitude of the competition. Considering the estimated participation exceeds 100,000 competitors, Bybit has pushed for “fair play.”
However, wash trading is especially troublesome in a competitive environment, as it can lead to false trading representation.
Recent tweets have shed some light on the team’s surprising 30,000% return on investment (ROI) in perpetual contracts. Ranked Bybit trader @DefiSquared noted that these contracts have had minimal volume and even experienced 30-minute intervals with no trading activity.
Pointing at dubious tactics, the trader notes, “Seems like the winning team was buying contracts on illiquid tokens, using a second account to buy it up, then selling on the original.”
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The Practice of False Trades
While the move mimics, a genuine trade shows an outstanding ROI when no real profit was earned.
The influencer also pointed to the immense attention and subsequent adulation the team received during their brief period as the reason for resorting to these measures.
He noted, “It’s pretty basic and very easy to detect. So why bother at all? Well it turns out they got amazing free advertising and thousands of users to join their group during their short time in the spotlight.” Thousands of users reportedly flocked to join their group.
In an official statement, Bybit emphasized its commitment to maintaining the “sanctity and integrity” of the WSOT competition. The statement underlines ensuring a just and transparent trading environment. Bybit has further urged all participants to resort to honest practices for a fair competition.
Meanwhile, the crypto community is closely watching the conclusion of the WSOT 2023 competition. The competition is against the backdrop of a tough year for the exchange.
This year, Bybit was pulled up by the Japanese regulator along with three other exchanges for unregistered operations. The exchange also ceased operations in Canada after the Canadian Securities Administrators recently mandated increased due diligence.
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