WSJ: manipulation in the cryptocurrency market has brought traders $825 million

WSJ: manipulation in the cryptocurrency market has brought traders $825 million

Recently a study published by the Wall Street Journal exposes the manipulative scheme undertaken by organized cryptocurrency trade groups. 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

The report, published by the WSJ on 5 August 2018, reflects the current scenario prevailing in the cryptocurrency market. In the article special attention was paid to the coordinated actions of traders during the implementation of the scheme “pump and dump”, which leads to either the rise or the collapse of different cryptocurrencies.

Therefore, trading groups generate hundreds of millions of dollars, while others suffer from losses

The experts at the Wall Street Journal has identified 175 different schemes applied to 121 cryptocurrency. According to the report, the group “work in private chats available by invitation only, often under the supervision of an anonymous moderator”

As an example, in the WSJ report discusses the long-suffering Aldon Cloakcoin that in 2018 a few times have experienced the price jumps. According to the WSJ, trading group, namely Big Pump Signal, propanil Cloakcoin July 1, which led to a rapid takeoff Aldona on Binance:

“The price of Cloakcoin soared to Binance soon after the Big Pump Signal were sent to their followers a message in Telegram, which told me to buy this altcon”. The rate in the ten most active currency pairs with Bitcoin on Binance has barely moved during a Pampa Cloakcoin,” said analysts.

Detailed analysis from WSJ complements a series of theories that have surrounded the price manipulation on the cryptocurrency market.

First, who has taken domestic regulatory action in the fight against the scheme “pump and dump” was the Bittrex exchange. November 27, 2017, the exchange raised the trading minimums and limited the amount of the minimum placement of 50 000 satoshis to 100,000 satoshis (1 Satoshi = 1/100 000 000 BTC). Also, all users of the exchange sent out a warning that the participation in the schemes “pump and dump” their accounts will be blocked.

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