The Latest Crypto Scams, Pump Groups and Twitter Botnets

If you’ve been following crypto for a while this news will probably be nothing new.

Still, it’s good to know what’s going on in crypto markets so that you can protect yourself.

  

The first story came out of the Wall Street Journal.

The article explains that dozens of trading groups, aka pump groups, have been manipulating crypto prices at major exchanges.

That trading activity has generated at least $825 million in profits. Meaning, unless you’re in one of those groups and profiting, these pump and dumpers have likely cost you money.

The WSJ identified 175 pump and dump schemes involving 121 different digital coins.

It works like you might suspect. The groups go long a position, then pump positive news on the coin, and then sell into the strength.

And it tends to be smaller coins with lower trading volumes that can more easily be pumped.

Your best bet is to just avoid these groups, which often charge onerous fees with no guaranteed results.

The other crypto scam story to come out recently came from ITPro where they used AI to review 88 million Twitter accounts for bots and spammers.

According to the research the fake 'cryptocurrency giveaway' Twitter scam included at least 15,000 bots.

The bot would involve a legitimate crypto account by stealing its display name and avatar. Only the @name would be different.

Then they would tweet about crypto giveaways… and many unsuspecting people though they were real.

If you use Twitter for crypto at all then you’ve likely seen many of these ‘giveaways.’ I know I have.

Avoid them at all cost!

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