1. Home
  2. News
  3. Market

Crypto Price Manipulations Let Trading Groups Earn $825M in 2018

Crypto Price Manipulations Let Trading Groups Earn $825M in 2018

According to a recent study conducted by the Wall Street Journal, organized “trading groups” are responsible for creating price manipulations. Trading schemes known as “pump and dump” have made $825M in revenue since the beginning of the year.

Coordinated schemes allow traders to inflate and crash the prices of different cryptocurrencies. As a result, trading groups generate revenues for themselves, while other participants suffer losses once a particular asset is sold en masse. The WSJ revealed that coordination was managed via messengers like Telegram and social media platforms such as Twitter.

The study includes 175 trading schemes with 121 different coins. The WSJ claims that “many more such groups exist, potentially adding millions or ten millions more in activity.” These findings add weight to the market manipulation theories that have emerged in recent months. There is no consensus on this matter, however. There are those who name factors like the Mt. Gox liquidation sell-offs and the existence of major bagholders to be important reasons behind price fluctuations since the end of 2017. Others believe these types of activity have no significant influence on markets.

07 Aug 2018

Subscribe to our newsletter

Our newsletters are sent on a regular basis and are aiming to provide you most overall market situation

Latest news

ICORating At The Blockchain Life Forum

ICORating’s Head of R&D, Anastasi...
22 Oct 2018

New Token Listing: UBEX

Trading pairs of initial coin offer...
22 Oct 2018

ICORating Prepares Its Quarterly Report (Q3 2018)

ICORating analysts are currently ge...
22 Oct 2018

New Funding Rounds: Cobo Wallet, TokenInsight and dYdX

Initial coin offering (ICO) project...
21 Oct 2018

New Token Listings: Blockpass and Provoco

Trading pairs of initial coin offer...
19 Oct 2018

ICORating Weekly Report: 41st Week of 2018

This report includes data on severa...
19 Oct 2018

Security Token Future Conference Co-Hosted By ICORating A Great Success

ICORating co-hosted the global Secu...
19 Oct 2018

Gates Foundation Partners With Blockchain Startup Coil

The Gates Foundation has announced ...
18 Oct 2018

New Token Listing: Alt.Estate

A trading pair of initial coin offe...
18 Oct 2018