The Real Story Behind Cryptocurrency Manipulation By Multi Million Pump and Dumps
The crypto wolves and their multi-million ‘Pump and Dumps’
A six-month investigation by the Wall Street Journal, that examined crypto exchange data and online communications between traders, claims to have found 175 “pump-and-dump” schemes for 121 different crypto-tokens.
Cryptocurrencies are sometimes treated as investment tools for traders that want to make a profit by betting on the price of them, and of that use, a big speculative market for cryptocurrencies has derived. But, according to an investigation carried out by The Wall Street Journal, there is more than just only the invisible hand of the market moving these prices up and down. Supposedly, there are groups that carry out what is called “pump and dump” operations to profit from the investments of other traders and then letting the prices fall hard, artificially manipulating prices.
These groups act under the veil of Telegram encryption to carry out their operations, and they are focused on little and new cryptocurrencies, those with little participation in the market, to manipulate them better for their purposes. More known and popular coins that have a big market share are more difficult to move, because of trading volumes.
As strange as it can be, these moves are not entirely illegal, because cryptocurrency markets are not regulated. If these prices were being manipulated in the stock market, the story would be different. But there is more to it.
The groups operate in exchanges that list little to no activity cryptocurrencies, like Binance, one of the biggest exchanges in the whole crypto world that lists a lot of cryptocurrencies that are obscure to many traders.
It is impossible to know how many of these groups are out there, but the investigation estimates that more than 60 groups are active with more than 236.000 followers in total. There might be more in other encrypted invitation services like Discord, a popular room-based chat platform. The truth is that more vigilance and regulation is needed to protect investors from these kinds of stealth attacks to the market, that is being manipulated even as we speak.
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Great you share this on Steemit. Many people have heard of pump and dump activities, but still many people chase it. It's always good to keep sharing to information. You can't warn people enough for it! Honestly! A great post man! +1 upvote AND +1 follower :)
Agree with u Crypto is all about patience people stuck in these pumps bcz of greed they don't want to hold there valuable assets and when they saw something rising drastically they jump in to that shit and loss everything
Sir can you tell me when will be market pump in future
I am pretty sure Bitcoin will cross its All time High This Year
How much pump and dump is there .. more profit for watchers and risk takers .. and good for hodlers too ..
Great ! but how can we stop these pump and dump groups, any idea about that.