telegram an instant messaging service founded by pavel durov is being used by cryptocurrency scammers to coordinate pump and dump schems as reported by business insider . these scammers create exclusive groups in which they share information and organize attacks to make a profit off the losses suffered by unaware traders.

the phenomenon of pump and dump is not uncommon in other trading venues either particularly stocks and equities markets . however the strict regulations imposed on those markets make this sort of price manipulation illegal as opposed to the unregulated crypto world. in fact the recent pump and dump plans in the crypto sphere may be being coordinated by outside forces.

Telegram Of Loss

the russian app telegram appears to be the main venue where the pump and dump schemes are being perpetrated. according to business insider a number of channels within telegram are designed specifically for just this sort of market manipulation . with names like pumpking community crypto4pumps and we pump these communities provide a venue for scammers to attract participants who then help the price move.

these channels offer information on specific coin pumps to those who subscribe and then encourage subscribers to buy in quickly. after the flut of buying and the resultant price increase members reach out in other social media encouraging further buying from unsuspecting victims . as the price continues to rise the pumpers begin to sell causing panic selling and collapsing the price the dump.