The cryptocurrency market has become a fertile ground for pump-and-dump schemes, thanks to its relative novelty, high volatility, and often lax regulation. These schemes in the crypto world operate similarly to their stock market counterparts, but with some key differences that make them particularl...
Coaching schemes can be thought of as advanced fee schemes, but instead of paying a little money now in exchange for a large sum of money later, users pay for knowledge that the organizers promise will make them money. But in most cases, the promises are false. The advertised programs usua...
Fraud: OTC markets are infamous for pump-and-dump schemes. These involve artificially inflating the price of a stock through false or misleading statements, often via social media or online outlets, and then selling the stock at a higher price before it crashes. Illiquidity: Many stocks traded ...
Low liquidity levels also provide opportunities for some traders to manipulate stock prices. Thepump and dumpscheme is a popular trading scam to lure investors into buying a stock. Large amounts of a penny stock are purchased followed by a period when the stock is hyped up or pumped up. Onc...
Pump-and-dump schemes Social engineering attacks, etc. 9. How Can I Create NFTs Another way to invest in NFTs is to create or mint your own. Minting refers to the process of publishing unique digital assets on the blockchain so that they can be stored, sold, and traded. While it might...
While airdrops are an exciting promotional activity, they do have considerable risks. There are numerous cases of scammers using airdrops as pump-and-dump schemes. Airdrop participants are also vulnerable to phishing attacks and marketing spam if the developer sells their data to an unauthorized...
Pump and dump schemes in which traders create excitement and hype around a DApp to drive the price to an unsustainable price before selling their shares and crashing the stock. Smart contract vulnerabilities that can enable attackers to drain funds from a contract. ...
Pump-and-dump schemes. These schemes are deceptive practices involving the artificial inflation of an NFT's price through coordinated marketing efforts, often driven by influential individuals or groups. Pump and dumpers drive the price of an NFT to a peak and then liquidate their holdings, causin...
Then, everyone “dumps” the coin and sells. These schemes are often orchestrated through apps like Slack or Telegram, he adds, and advises curious chatroom readers to beware of such gimmicks. An investigation into “pump and dump” schemes by Business Insider found the practice to be an “...
The high distribution of meme coin holdings among insiders and whales can leave retail investors vulnerable to pump-and-dump schemes and erratic market movements. No utility Most meme coins do not have use cases and are used only for speculative gains. The Bottom Line Meme coins have emerged...