Bitcoin Ordinals Depicting Poop Emoji 1.2BTC — Equivalent to approximately $28,000 as of March 1st.
The ordinals were labeled with the inscription #121 and cast in blocks 773820.
It is unclear if this deal was a legitimate sale or a wash trading attempt to raise interest in the NFT ecosystem as a whole.
NFT wash trading
Wash trading is when the buyer and seller of a transaction are the same person or are colluding. Usually, by accruing interest and triggering his FOMO, he artificially pushes up the price of the asset.
Due to the lack of regulation and the anonymity inherent in the industry, the NFT market has been flooded with wash trading since its inception. Currently, it is very difficult to determine if the buyer and seller in a transaction are different people.
Historically, NFT wash traders have exploited the digital nature of these markets and the lack of regulation against fake sales. buy This creates the impression that the NFT is valuable, which can increase interest and lead to actual sales to unsuspecting buyers.
Due to the anonymity inherent in the cryptocurrency and NFT industry, it is difficult to tell at first glance whether a transaction is legal or not. Wash traders can use as many wallets and accounts as they want to try to hide their actions. Investors need to be increasingly cautious when dabbling in NFT trading.
A 2022 study revealed that nearly 95% of all trading volume on NFT platform LooksRare was involved wash trading.
Meanwhile, a Dune Analytics study found that around 45% of all NFT trading volume on Ethereum is associated with shady transactions.
An ordinal is an extra bit of data attached to the lowest denomination or atomic unit of Bitcoin, the satoshi or sat. Each BTC consists of 100,000,000 cents. This is similar to the fact that 1 dollar is made up of 100 cents.
Simply put, the Ordinal protocol allows users to embed additional data into sats. Data can be audio, video, text, or jpeg images. For the inscription number 121, the ordinal is the jpeg image of the poop emoji.
The Ordinal Protocol was developed by Casey Rodermer and launched on January 21st. The cryptocurrency community is divided on whether ordinals are good for the Bitcoin ecosystem or detrimental to its overall image.