Thousands of crypto pump and dump found by researchers

loading Thousands of crypto pump and dump found by researchers

There are thousands of Pump-and-dump groups on popular messaging apps in which the study conducted by the by the Social Science Research Network (SSRN). Pump-and-dump is a fraudulent practice of perpetrators encouraging unwitting investors to bus an asset to inflate its artificial price and then sell it when the price gets high. But this practice is not new and the newly published data suggest that (the pump and dump) phenomenon is spread all over and it is quite profitable.

The researchers identified that 4,818 pump and dump attempts between January and July in this year and the studying data scraped from messaging platforms Telegram and Discord.

The academics admit that during the of Pump-and-dump schemes reviewed by them which were conducted in a similar manner to those who were already in part in the past,

“The recent explosion of nearly 2,000 cryptocurrencies in a largely unregulated environment has greatly expanded the scope for abuse.”

The paper notes that “pumping obscure is very much profitable than pumping the dominant coins in the ecosystem” but at the same time “Bitcoin is not immune from the pump-and-dump phenomenon”. The report managed to identify nearly 76 Bitcoin (BTC) pump-and-dump that groups on Telegram and six on Discord.

Two bills addressing crypto market manipulation, dubbed “The Virtual Currency Consumer Protection Act of 2018” and “The U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018,” compiled in mid-November, are set to go before the United States House of Representatives.

The world’s second largest stock exchange, NASDAQ said that in November its market surveillance technology “stamp out manipulation “in crypto markets. The first NASDAQ crypto client adopted its surveillance system is Gemini which the crypto exchange owned by Winklevoss twins.

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