Report: Over half of Ethereum ERC-20 tokens are suspected of pump and dump schemes in 2023

Bitget App

Trade smarter

Bitget2024/02/02 04:24

Despite the downturn in the crypto market last year, pump and dump schemes have not disappeared. A report by Chainalysis found that more than half of all Ethereum ERC-20 tokens listed on decentralized exchanges (DEX) in 2023 met the criteria for possible pump and dump schemes. In these schemes, scammers sometimes engage in wash trading, buying and selling the same token to create false high trading activity without changing ownership.

Last year, Chainalysis identified 90,408 potential ERC-20 pump-and-dump cases that brought $241.6 million in profits to those who extracted liquidity, with each token sale yielding a meager profit of only $2,672. It's worth noting that while Chainalysis analyzed cases meeting these criteria, it could not prove that every case was a market manipulation scheme.

Chainalysis found one wallet initiated 81 possible pump-and-dumps with total profits reaching $830k. Pump and dump schemes often harm retail investors' interests which is one reason why some regulatory bodies hold negative attitudes towards cryptocurrencies.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

Trending news

US court rules that Cook is allowed to vote at next week's FOMC meeting

The South Korean government has removed virtual asset trading and intermediary businesses from the list of restricted industries for venture enterprises.