Manipulation of cryptocurrency ‘trading groups’ generates $825 mln in 2018, unveils WSJ
The recently published study on Wall Street Journal reveals the manipulative measures undertaken by organised crypto ‘trading groups.’ These groups are engaged in manipulation of cryptocurrency price that has eventually generated $825 million in a span of just six months of 2018.
The report published on 5th August, 2018 by WSJ is a reflection of the current scenario prevailing in the crypto market. The journal has specifically highlighted the coordination directed towards “pump and dump” schemes. This has resulted the traders to upsurge and deteriorate the valuation of various virtual currencies in 2018.
The research study has stated that the cryptocurrency trading groups in the form of their revenue generates hundreds of millions of dollars. In contrast, the other groups suffer from losses as soon as they sell their particular asset.
The WSJ Report
The Journal has highlighted 175 different schemes that have been trading 121 various crypto coins. According to the report, “[m]any more such groups exist, potentially adding millions or tens of millions more in activity.” It further stated that they “operate in private chat rooms, accessible only by invitation, generally overseen by an anonymous moderator.”
In the report, WSJ exemplifies an altcoin that has experienced price pumps a number a times in 2018. This happens to be an old altcoin known as Cloakcoin. According to WSJ, a trading group namely Big Pump Signal has led to 1st July growth rush on Binance, a major crypto exchange.
The study has mentioned, “The price of cloakcoin skyrocketed on [...] Binance shortly after Big Pump Signal sent a message on Telegram to followers telling them to buy.” The research also gives a description by stating, “Prices of Binance's ten most-traded bitcoin pairs barely moved during the Cloakcoin pump.” The detailed analysis has further supplemented the series of theories already revolving around price manipulation of cryptocurrency in the market.
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