HomeUncategorizedASIC reveals how it infiltrated crypto ‘pump and dump’ Telegram groups By Cointelegraph

ASIC reveals how it infiltrated crypto ‘pump and dump’ Telegram groups By Cointelegraph

December 29, 2021

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The Australian Securities and Investments Commission (ASIC) has revealed the details of how it took down crypto “pump and dump” Telegram groups back in October.

A pump and dump scheme typically involves using social media to coordinate users to buy large amounts of a thinly traded token to artificially inflate its price. They then cash out with massive gains after other investors, who aren’t in on the scheme, FOMO in on a momentum trade.

Pump and dump schemes are cyclical, speaking in 2018 and again in 2021. Source: presentation to ASIC by Professor Talis Putnins
The outcome of the Sept FXS pump was a 90% price increase in less than one minute. Source: presentation to ASIC by Professor Talis Putnins

What’s behind pump and dump schemes?

Screenshot of an announcement in ASX Pump Organisation Telegram chat from ASIC. Source: presentation to ASIC by Professor Talis Putnins

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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The Australian Securities and Investments Commission (ASIC) has revealed the details of how it took down crypto “pump and dump” Telegram groups back in October.

A pump and dump scheme typically involves using social media to coordinate users to buy large amounts of a thinly traded token to artificially inflate its price. They then cash out with massive gains after other investors, who aren’t in on the scheme, FOMO in on a momentum trade.

Pump and dump schemes are cyclical, speaking in 2018 and again in 2021. Source: presentation to ASIC by Professor Talis Putnins
The outcome of the Sept FXS pump was a 90% price increase in less than one minute. Source: presentation to ASIC by Professor Talis Putnins

What’s behind pump and dump schemes?

Screenshot of an announcement in ASX Pump Organisation Telegram chat from ASIC. Source: presentation to ASIC by Professor Talis Putnins

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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