How fake news and deepfakes power the latest crypto pump-and-dump scams
Briefly

Pump-and-dump schemes in Web3 manipulate the price of cryptocurrencies through four main stages: token prelaunch, promotional hype, price pumping by coordinated buying, and a mass sell-off. The nature of decentralized trading and continuous 24/7 access, alongside a lack of stringent regulation, renders the crypto market particularly susceptible to these schemes. Individuals can protect themselves by being skeptical of investment advice, social media ads, and promises of quick returns. Recent regulatory efforts, such as Operation Token Mirrors, show that law enforcement is increasingly targeting these deceptive practices in the cryptocurrency space.
Pump-and-dump schemes in Web3 manipulate a cryptocurrency's price through coordinated buying along with misleading information and hype to lure investors before a mass sell-off.
A pump-and-dump follows four stages: prelaunch, promotional hype, price pumping through buying, and a coordinated sell-off, benefiting orchestrators who profit immensely.
To protect against pump-and-dumps, avoid unsolicited investment advice and be skeptical of social media ads and unrealistic returns in short time frames.
Regulations continue to evolve, as seen in October 2024, with Operation Token Mirrors seizing $25 million and charging 18 individuals involved in such schemes.
Read at cointelegraph.com
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