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ASIC reveals how it infiltrated crypto ‘pump and dump’ Telegram groups -Breaking

by Mike Robinson

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The Australian Securities and Investments Commission (ASIC) has revealed the details of how it took down crypto “pump and dump” Telegram groups back in October.

A Pump-and-Dump SchemeA common method is to use social media to organize users to purchase large amounts of tokens that are not traded to artificially raise their prices. They then cash out with massive gains after other investors, who aren’t in on the scheme, FOMO in on a momentum trade.

In 2018, the cycle for pump-and-dump schemes was cyclical. SourcePresentation to ASIC by Talis Punins
A Sept FXS pump produced a price hike of 90% in 90 seconds. SourcePresentation to ASIC by Talis Punins

Why do pump-and-dump schemes work?

Screenshot taken from the announcement Telegram Chat from ASIC: ASX Pump OrganisationSourcePresentation to ASIC by Talis Punins

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