Usual crypto exchange YoBit has an unusual plan to attract more traders to its platform by boosting trading on the platform, randomly pump coins to artificially drive up their prices. The exchange, apparently based out of Russia, recently stated that it would inject 10 BTC (~$66,000) into 10 random markets. Though not a big sum associated with the worldwide crypto ecosystem’s estimated $12 billion in daily volume, it could lead to important price increases in thinly-traded microcap altcoin markets.
Founded in 2015, YoBit being a Russia-based digital currency exchange has been offering its customers many digital currencies. The trading platform was in the headings a number of times in numerous reports of illegal activity and difficulties with users trying to remove funds from their wallets. However, as per according to CoinMarketCap, YoBit’s daily trading volume reached $28 million.
The U.S. Commodity Futures Trading Commission earlier in 2018 issued a customer advisory on cryptocurrency pump-and-dump schemes, cautionary that they may unlawful. While it’s not clear if crypto exchange YoBit’s planned trading event quite meets that meaning, it’s difficult to envisage that it doesn’t qualify as some kind of market manipulation.
In November 2017, Cointelegraph reported that with the help of messaging app traders were guiding pump and dumps on YoBit Telegram. On the other hand, it remained indistinct whether the exchange knew the details of the pump and dump activity, as YoBit reportedly did not respond to a request for comment from any news.
Although the purpose of YoBit’s pump and dump isn’t exactly to operate the price of a single crypto exchange as no person other than YoBit knows which coin is going to be pumped. As per Live Bitcoin News, unfortunately, due to the lack of consistent regulation concerning crypto exchanges and the purchasing and selling of cryptocurrencies. YoBit’s system is most likely not theoretically unlawful in some countries, and they have been actually complicit in the scheme.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]