the In a multidisciplinary study, researchers found that there is on messengers such as Telegram and Discord, a number of Pump-and-Dump schemes. In the unregulated Bitcoin market, it is easy, fast rewards, without reckoning with consequences.
By Phillip Horch
21. December 2018ShareFacebookTwitterLinkedInxingemail
found out The publisher of the study “The Economics of Cryptocurreny Pump and Dump Schemes”, which is likely a few surprise. They studied the platforms Telegram and Discord, and found that a lot of the popular-fraudulent method to how to get money fast.
How Pump and Dump works?
the way The schemes operate according to the principle of the “greater fools”. It comes to invest into a Coin, while it increases (Pump). Then it comes to sell at the best rate, so just before all get out and the price falls Dump (). The participants in such groups are aware of this. In principle, everyone who is a member of such a group knows that the initiators of the group to benefit the most. The hope is then to be faster than the rest of the members, on the other hand, a rapid rate increase results in that “outsiders” are aware of it and in addition capital to invest.
The telegram groups are mostly read-only channel: You can only read the announcements of the initiators. First of all this announce in advance the exact date and the stock exchange of the upcoming Pump and Dump. Then, just before it goes off, the start will be given: The Coin is named. Those who invest in time and back off from the gamble of the next larger idiots the money.
Lack of regulation favored gambling
The researchers of the study found out that Telegram-groups total 3.767 different groups of frolicking, on Discord a total of 1.051. Overall, the researchers identified currencies 300 different Crypto, which have been used for these methods.
Ultimately, the researchers came to the conclusion that it would be in the normal case, smaller and lesser-known currencies, which pumped and dumped. In the Large, such as Bitcoin, Ethereum, Ripple and the likes, this is less profitable.
That such a fraud is ultimately possible, is the lack of regulation: It is not simply forbidden to participate. The next big Pump and Dump on the 23. December take place on Binance 17:00 GMT. Of a participation, however, is not recommended mostly.
