Bitcoin Forum

Pump and dump is a big threat to cryptocurrency and this discourages many people from investing. Consequently, there were rumours that some exchanges such as Binance have means of preventing this. However, recent revelations show that such activities are happening even in the top exchanges. Do you think exchanges can do anything about this menace?

Pumps and dumps is already present in crypto for a long time now and people must be used to it. If it discourages people then they don't understand how putting money on crypto works.


Disregarding manipulation of an exchange itself, as long as there are lots of whales, weak hands, lots of random speculations created by anyone whether positive or negatve, hype, FUD's, FOMO etc., pumps and dumps can't be prevented.That's how volatile crypto is. People must understand that they will face these type of risks once they enter crypto world.

pump is common word in crypto language. Exchanges hates pump and dumping of a coin as it force lot of users to sell coins and result loss of money of users accounts. exchanges cannot control this in case of pumping , a Big whale will come and buy all coins in order list and price will be up and then after some time or days price will dropped back to normal stage.

crypto market is always on risk basis , people invest that amount if he.she can effort everyone know this rules.

In case of pumping always Exchange owner + the person who did this + the group members who got tip regarding this pump will always in profit rest all will loss in case of dumping.

Thats very much misleading info you have gotten here. Exchangers can not do anything about the pumps and dumps and they play only a role of platform where all these things are happening. There is practically no way to get clue that when the particular coin will get pumped because everyone has right to invest any amount of money they want at anytime and thus it helps pumper to do it at specific time with group activity. I have not even heard of any rumour about the Binance and its step forward to take down the pumpers like that. This market is manipulative and no one can do anything about it in true sense.

what do you want to exchange to do about pump and dump. you said some exchange are taking step but you do not tell us what are the steps. do you want to talk about delisting of coin. maybe you forget one of the way exchange make money is through the transaction fee being charge which means no matter how coin are being pump and dump they are still making their money. I do not think its going to be easy to control pump and dump because exchanges do not know which coin is going to be pump and dump.

Pumps and dumps are fraudulent activities and usually affect newbies who may not really understand what is going on, some exchanges have policies against it and usually suspend accoutns found guilty to be constantly abusing it

One of the challenges I think exchanges have as regard curbing it is that you may not be able to tell for sure who bought honestly or those who are pushing it,unless it a repeated occurence several times

Ok, let's say I'm a trust manager that owns a couple million USD. I go to an exchange and wait for a signs of bear pressure weakening and buy to create a signal for the other buyers. Then As they join in and pump the price a bit, even by $100 over my entry point, I dump everything. How is that a fraud? It's not a crime. Manipulation has always been there and you would do the same thing if you had an opportunity. I know that If I had 1 million BTC to play with I'd pump and dump the shit out of all those twitchy panic sellers.

I dont think so. They should have nothing to do with it. That is the deal. If one exchange will do manipulate one crypto currency then I guess they should be sued.
It is the same as manipulating fiat money.

Keeping more to add demand and selling more to make it cheaper. That is bad move and the gains are only on their side. That is being a monster.

This is currency we are talking about. Currency!

I really think it is impossible to avoid pump and dump, how can you distinguish a natural interest by investors in a new and unknown coin to the manipulations exercised by an investor or group of investors? Such activities are illegal as we know but due to the nature of this market and the secretive nature of such groups finding those responsible which will be the only way to stop this is very difficult.

Pumps and dumps in the crypto world will hardly stop except there's some form of regulation is introduced in the space. That being said, I'm against P n D as it is a threat to the crypto world. Usually info about a particular pump is passed to members of a group and they take positions at very cheap prices, and those who buy in thereafter get burnt

Even the topmost exchange cannot prevent pump and dump because people would always have a way of getting around with it. I can still remember that Bittrex has acted upon it before by issuing a warning to the traders that whoever will be involved in pump and dump scheme, they would deactivate his account. This causes for some pump and dump groups to find other exchanges so that it would not endanger their accounts.

There are two kinds of pump and dump anyway. Those that are accumulated for a long time by the whales and then when they see that they have enough, they would release some news so that other small traders would buy the coin and dump upon them or the other pump and dump wherein the groups have a particular time in which they would announce the coin to be pump.

We dont know who is impel this game but we know at which exchange this happening. - 99% sure exchange owner know who is doing this as high extent trade are shown at different section in there panel. It can be redo in case the person trying to show some big player has been come to market after a constructive news about that crypto coin. if you note it one thing - It happens only with low value coins which are just inauguration after a bounty program.
If you deeply look how they play this game to push price
One user push buy limit of 0.0001 Purchase for some $$
second creates a buy limit at 0.001 then third 0.01 son on 50-60 in this other user thinks someone is buying currency alot - because overall graph represents 1000+% in One day growth -
Now game starts New investors come and buy coins Few more push ups and new investor got some profit.
Next time he invest high amount and buys the coin at 1300% or 1500% and last person run away with their profit.
price back to 400% then after on less than 40% - its very hard to recover this brekdown

yes, you are right, the pump really scares investors from investing, because this pump and dump cause a truly unbalanced market. but if we need to talk about on this situation, it is almost impossible to prevent the pump and dump events, these will always exist.

None. They should be just a place for doing the trades.

Perhaps they should put some rule with this exchanges that whatever crypto currency they are taking profit from transactioms should not be sold in a specific amount of time.

If they does, they could be whales that can control or manipulate the prices which wont be good with every investor.
Just like an ICO where the team behind it have coins that are locked for 1 to 2 years.

Exchange can somehow lessen pump and dump schemes if they strictly prohibit price manipulation on their exchanges and dedicate themselves to it 24/7. Although that is the case, most exchanges does not seriously fight for pump and dump schemes since they also earn a hefty sum of money from the fees of those trades and strict ban of it would greatly affect their profit.

Thanks to the pamp and dump the crypto market is so attractive to many. Thanks to this, many can earn here. And here the question is not in the role of an exchang in all this. It doesn't matter who influences the pamp and dump, it is important that it is present here. If there was no price change, then no one would buy currency, because there would be no point in that.

Pump and dump not only happen in crypto market but also in stocks market, because when the trading volume is low make easy for whales to do that. And will be more easy if they organized this pump dump by ahundreed or athousand people. I think Exchange can not do anything because they only connect buyer and seller.

I am sure that top and popular exchanges are setting up mechanisms in order to discourage the pump and dump manipulation from happening but am sure that these exchanges know that it can be difficult to implement rules to control the said thing. And we have to remember that these exchanges are in business so they also have to careful not to drive people away as it can be detrimental to their revenues and profits. This can be happening because the cryptocurrency market is not yet that very big compared to Forex or even stocks so an asset can easily be manipulated anytime.

Exchanges dont care about pump and dump.

The trader has to take the decision whether the market is being moved by some group or if it is a healthy movement of bulls and bears. What you can do is join some Pump groups yourself and listen to what they are doing. Dont get involved because you would money if you follow their signals. Rather use them to the opposite advantage.

For example if the group is going buy! buy! then you will SELL. But it is not so easy because there are other people who are doing the same thing and so its risky as well.

Exchange's management team doesn't have any control in the prices whether it will pump or dump, prices manipulating is the done by the crypto traders not by the exchange. Their obligations is to give traders a great trading experience and to monitor the maintenance of the exchange/s sites they are handling.

Pump & Dump is already running in many exchanges, but do not know whether they are able to control it to a certain extent or not. If it is really discouraging people and if people and exchanges are really against it then i can understand how can one make money with crypto trading and investments. I think exchanges will soon find any way to stop this Pump & Dump .

That's not really true. In all cases it's only a select few people (probably below 5%) actually manage to book any profits. The majority of the people are the losers providing the winners with profits. Money doesn't grow on trees, where you have one winner there are like a dozen of losers.

Crypto in general has barely any liquidity to it, so even without pumps there are enough opportunities to benefit. The only difference is that those who know what to do and look for can book profits within very tight ranges, where the noobs need massive swings in order to profit.

Also, while the majority of the people are only here for the speculative aspect, the rest is here actually for the utility. There is always a point to buy crypto.

Almost everyone that participates in such endeavors end being burned at the end and when they learn how they work, instead of understanding that they were scammed they want to be some of the early investors in those groups so they can profit from the misery of others, that is something that is simply not right, once you learn about how pump and dumps work no one should ever participate in one.

I dont quite agree with you. There is a difference between a scam project and a pump and dump. A certain project can be both or neither of these two. A pump and dump is not essentially a scam. If you observe the RSI of the bitcoin charts you can obtain two points one at which the market price rise and the other at which the price drops.

Though this it is possible that evry minute a pump and a dump occurs in every trade-able asset on an exchange. Do the exchange have any hand in it? No. It the traders who even unknowingly end up pumping and dumping; sometimes knowingly as well.

Exchange have solid team with high experience and powerful tools, there's no doubt they prepare everything from bad until the worst. As users we only need to follow their rules not complaint, they have full control not us. They will fighting with their own way, survive is the only way to give proof they have capability. Let it go, it's not our problems anyway.

Pump and dump is not a threat, but an opportunity. All you need to do is learn how to make money on it. To do this, you can use technical analysis, fundamental analysis, or simply rely on luck (but it's very unreasonable, so I don't advise this tactic).
As for exchanges, they only benefit from this. Moreover, I am sure that they themselves make pump and dump. Therefore, they will not use any real action to prevent this.

Pump and pump aren't good for the cryptocurrency it's mean pump and dump are controlled by bigtime investors to manipulate the price
We need to make plan how to avoiding this kind of manipulation in the crypto for the security or all cryptocurrency holders and to encourage more people to invest in crypto

I never thought market can prevent this thing, neither binance or others. Pump or dump just a speculation from the owner of the bitcoin itself, out of the other factors. There's no other way except fight alone and avoid damage things.

It is true that pump and dump makes people think of a certain asset as a pump and dump scheme and avoid it but it is also profitable for those who can identify when the pump starts and when the dump starts. If you keep following them you will be able to set a certain price to buy and a certain price to sell. That way you can recycle your money, reinvesting it for more profit. However swings of price can happen any time and you might lose money as well.

Its not enough to fight it. If you want to avoid it totally you have to hodl and wait for years to pump it big.