Pump and dump schemes, wherein an actor will buy a large amount of a crypto coin in order to artificially increase the price, have been a problem in cryptocurrency since its inception. Of course, this problem isn’t new, it’s something the stock market has had to navigate for a while, but none the less it has been a prominent problem in crypto markets also.
In February of this year, the US Commodity Futures Trading Commission released a warning, alerting potential investors about these scams. Cryptocurrency is often seen as an attractive venture for criminals for a few reasons. Cryptocurrency is relatively new, so it’s fair to say most investors are inexperienced in the area and aren’t confident in what to expect. Fraudsters can exploit this vulnerability in order to take advantage of investors and manipulate the market. The anonymous nature of crypto is also attractive to criminals, of course.
https://all-stocks.net/researchers-develop-an-algorithm-to-detect-crypto-scams-before-they-happen/
