An unverified token on JustSwap accounted for $364 million in trade, or 91% of the DEX’s total volume

By Selena On Sep 24, 2020

After the success of the non-custodial exchange Uniswap, some clones have appeared on competing blockchains hoping to gain achievements like Uniswap. And JustSwap is one such name.

JustSwap, a Uniswap clone, recorded over $ 360 million of trading volume in an unknown token

JustSwap, copy TRON-based DEX named after its founder, Justin Sun. This exchange recorded over $ 360 million of trading volume in an unknown token, raising suspicion that the exchange is rife with wash trading. This comes when the largest DeFi tokens are struggling to trade over $ 150 million of daily volume.

According to CoinGeck, JustSwap has a larger volume than Uniswap for a short time. But this was quickly fixed as a single unverified token made up 91% of the exchange’s volume.

CoinGecko co-founder Bobby Ong shared:

“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 mean we have yet to tag them. We recently added Justswap a few weeks back, and there has been some backlog. .”

While it’s possible, it’s tough for unverified tokens to reach a daily volume of more than $ 50 million. Yesterday, however, the top-traded asset on JustSwap was an unverified coin with a volume of $ 364 million.

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 be used to wash trade to inflate volume.”

Tron has been controversial multiple times, so this should come as no surprise. While such volumes are impossible, the chances of this volume being legitimate are slim to none. It took DeFi’s top assets years to achieve over $ 100 million of volume.

Meanwhile, there are some familiar tokens like COMP, MKR, and SNX that don’t regularly trade at 100 million dollars per day. Therefore, the possibility of a random token on Tron surpassing this mark in a few weeks is very unlikely.

Ong mentioned this data could be indicative of rampant wash trading on JustSwap. The dynamics here are pretty straightforward: increased trading volume skyrocketed to the top of the charts, attracting speculators to think there’s real liquidity, and then real liquidity poured in.

JustSwap’s numbers have returned to normal. It fell from a top-three DEX on CoinGecko to the 7th rank after the data provider blacklisted unverified tokens claiming to do hundreds of millions in volume.

It’s very likely that these numbers are being forged by bad guys, although there’s no substantial evidence to back this up. That being said, Ong and the CoinGecko team are closely monitoring JustSwap’s volume.

He stated:

“Justswap has been quite notorious with their trading volume inflation and we are taking a stricter approach with things here.”

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