Crypto Influencers’ Pump and Dump Exposed
The legitimacy of the cryptocurrency trading sphere has once again had its credibility questioned with highly alarming evidence of pricing manipulation on an industrial scale! For similar stories take a look at our homepage blockchain daily
Bitcoin Bravado, who evaluate, analyze and subsequently recommend crypto-investments through their paid-subscription Telegram group, have had some alarming private chat-logs leaked to the public domain.
The screenshots released by the so-called whistle-blower indicate that the Bitcoin Bravado team are using their central web of contacts to engage in multi-million dollar pump and dump schemes.
Although pricing manipulation accusations are anything but a rare breed in the cryptocurrency industry, the leaked conversations provides a damming insight in to how regimental this illicit activity really is.
begins with the crypto-cartel formulating a circle of trust, which in this instance appears to be driven by an individual going by the username CryptoSignals. The next stage of the process
involves identifying a suitable low-capped coin that would be an ideal conduit for manipulation. The Telegram group, which is suitably titled “Do you want to be 50x your $”, short-listed a range of potential projects, however, it was Haven Protocol (XHV) that appeared to receive the general consensus.
Upon reaching an agreement on which coin to pump, the Bitcoin Bravado insiders then determined how much capital was required to manipulate the price significantly with the equilibrium level set at 20-25% of total token supply. The leak gets murkier and murkier as the illicit planning grows in depth, with certain members of the group suggesting that they have contacts with the ability to influence the coin’s listing at a variety of exchanges, some with significant trading volumes.
pump and dump
The purchasing power of this pump and dump cartel should not be underestimated. The leaked chat logs indicate that de facto leader CryptoSignals estimated that the team would need to artificially inject in the region of 40 BTC, which at the time of press equates to approximately $360,000.
As one would expect, the official Bitcoin Bravado Twitter page, which has over 25,000 followers, has categorically denied any involvement in the scheme, instead accusing the whistle-blower of himself being a market manipulator, adding that the content is nothing more than “illegal slander”.
With the scandal still fresh in the public domain, what is to follow remains unknown. However, one thing that is for certain is that there can be no doubt as to the vulnerabilities of the cryptocurrency markets as a whole, with the current unregulated framework an ideal mechanism for illicit activity. Next time you see a low-capped coin spike in value at unprecedented levels, consider the underlying reasons driving it.