In the first six months of 2018 due to the manipulation of the exchange rate using the “pump and dump” trading group was able to make $825 million this is stated in the report of the Wall Street Journal.
In the study, experts analyzed 175 schemes with the participation of 121 cryptocurrencies. As an example of the scheme “pump and dump” analysts examined Aldon Cloakcoin.
“Cloakcoin price soared on the stock exchange Binance shortly after a group of traders Big Pump Signal sent a message to the Telegram, which told his subscribers to buy althin. The rate in the ten most active currency pairs with bitcoin on Binance barely moved during a Pampa Cloakcoin”, — said the analysts.
Note, in the U.S. these manipulations were deemed illegal in the 1930-ies, when groups of traders sold each other securities before selling them to a wide range of investors at an inflated price.
We will remind, in may, the U.S. Department of justice initiated an investigation to determine the possibilities of manipulation of cryptocurrency traders.
ForkLog previously published an article about the most popular schemes manipulating the price of the cryptocurrency market.
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