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4,000+ crypto pump-and-dump attempts found on popular messaging apps, research

Researchers from the University of New Mexico, Tel Aviv University, and the University of Tulsa have found more than 4,000 crypto pump-and-dump attempts on popular messaging applications among them Telegram.

After scrutinizing data from Telegram and Discord, which are two popular messaging apps, the researchers found out that in the first seven months of this year, crypto pump-and-dump attempts reached a total of 4,818. The two messaging apps are among the first choices for the crypto community and they also use encryption to secure the messages.

The researchers noted that the scale at which the manipulation attempts were being discussed on these platforms is enough to invite the control of regulators. They also noted that the entry of sophisticated messaging platforms has made it easier for those seeking to conduct crypto pump-and-dump attempts.

According to Bloomberg:

While the fundamentals of the rules have not changed in the last century, the recent explosion of nearly 2,000 cryptocurrencies in a largely unregulated environment has greatly expanded the scope of abuse. Many of the groups attempting to manipulate crypto markets do not hide their goals attributing this to a regulatory vacuum.

The academics have also noted that crypto pump-and-dump scenarios are largely directed towards digital currencies with low volumes because they bring higher profits than artificially inflating the top coins.

However, the crypto pump-and-dump attempts comprised of 82 instances targeting Bitcoin.

In the past, the United States Department of Justice indicated that it will open up investigations into whether crypto prices manipulations are evident in the Bitcoin price fluctuations. The SEC has also expressed that a Bitcoin ETF can only be approved if crypto pump-and-dump schemes have been arrested.

Do you think the crypto pump-and-dump schemes have a bigger percentage in the current bearish crypto market?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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