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The digital currency market is full of tricky pump and dump operations

 Scammers have successfully manipulated asset prices and digital currencies, including fortunes, so they can dump their digital currencies to buy at a high price, according to a new academic paper that quantifies the abuse of the digital currency market.

The researchers identified 4818 pump and dump attempts between January and July, using data from Telegram and Discord, two famous messaging applications for the digital currency community. According to the results of the research on SSRN, the scope of fraud and deception in these operations is “widespread and often very profitable”, and regulators must be alert.

Academics from the University of Tulsa, New Mexico University and Tel Aviv University wrote:

“The increase in the number of digital currencies and their impact and changes in technology made it easy to implement pump and dump schemes. While the fundamentals of deception have not changed since the last century, the recent increase in numbers of digital currencies in a largely unorganized environment has greatly expanded abuse “

Many groups trying to manipulate digital currency markets do not hide their objectives, the study said, citing a regulatory gap for the sector.

Recommendations to tighten regulations
The study recommends recommendations to tighten regulations on digital currencies. The Securities and Exchange Commission (SEC) has recently pointed to concerns about manipulation as a concern that needs to be addressed before approving the ETF, which supporters believe will lead to widespread adoption of digital currencies.

In May, the US Department of Justice opened a criminal investigation to see if traders were manipulating the price of the dough and other digital currencies, which led to increased scrutiny in the digital sector.

The researchers found that raising the unknown currencies of low circulation is more profitable than raising the most famous digital currency in the system. However, Betquin, the most popular digital currency, has been targeted 82 times. Therefore, even protein is not immune to the phenomenon of pump and dump.

After the bursting of the speculative bubble in digital assets last December, Bettkin has lost more than 70% of its value this year.

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