YoBit Crypto Exchange Applies Pump And Dump Manipulative Scheme
YoBit trading platform decided to apply a manipulative exchange pump and dump scheme in order to increase the rate of random tokens, in accord with the message in the company's Twitter.
YoBit Pump in 22 hrs: https://t.co/RIbW7OhKzM— Yobit.Net (@YobitExchange) October 10, 2018
We will buy one random coin for 1 btc every 1-2 mins 10 times (total buy amount - 10 btc).
The pump and dump scheme in the financial market is considered a sort of a fraud. It includes the use of erroneous or fallacious advice to artificially raise the asset price.
YoBit added a countdown timer on its website and announced that it will acquire one random token for one bitcoin every 1–2 minutes 10 times. The total amount of the purchase is 10 bitcoins.
The response of the crypto community to such a decision was rather negative. Many Twitter users condemn such a decision of YoBit, and some directly accuse the company of fraud, without mincing words. As follows from reports, the US Securities and Exchange Commission (SEC) should pay attention to the activity of the crypto exchange, even though the community does not approve the intervention of government authorities in the crypto sphere.
Lol @SEC_Enforcement— Psychedelic El Barto (@PsychedelicBart) October 10, 2018
YoBit was founded in 2015 in Russia, and since then negative information pertaining to the exchange appeared several times in the headlines of many media. The platform was accused of suspicious activity; besides, its clients periodically faced issues with funds withdrawals from their wallets.
Hundreds of cryptocurrencies are available for trading on the exchange. According to CoinMarketCap on October 11, 05:35 (UTC), YoBit is 43rd with a trading volume of $32.6 million over the last 24 hours.
Earlier, the study of The Wall Street Journal indicated that crypto manipulation schemes brought fraudsters $825 million over the first half of 2018.