Social media platforms such as X, Telegram, and Discord are increasingly being used to orchestrate crypto pump and dump schemes, according to The Shib Daily. These schemes involve coordinated efforts to artificially inflate token prices through viral posts and influencer endorsements, leading to a surge in FOMO-driven trading. Insiders then sell off their holdings, often leaving latecomers with substantial losses.
The article emphasizes that while not all price increases are manipulative, the intent behind these coordinated efforts differentiates pump and dumps from genuine market growth. The lack of regulation in the crypto space complicates enforcement, undermining the industry's credibility and eroding investor trust.
Social Media Fuels Crypto Pump and Dump Schemes, Raising Investor Concerns
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