To the moon: defining and detecting copyright pump-and-dumps

To the moon: defining and detecting copyright pump-and-dumps

Blog Article

Abstract Pump-and-dump schemes are fraudulent price manipulations through the spread of misinformation and have been around in economic settings since at least the 1700s.With new technologies around copyright trading, the problem has intensified to a shorter time scale and broader poise pads in bulk scope.The scientific literature on copyright pump-and-dump schemes is scarce, and government regulation has not yet caught up, leaving cryptocurrencies particularly vulnerable to this type of market manipulation.This paper examines existing information on pump-and-dump schemes from classical economic literature, synthesises this with cryptocurrencies, and proposes criteria that can be used to define a copyright pump-and-dump.

These pump-and-dump patterns exhibit anomalous behaviour; thus, techniques from anomaly detection research are utilised to locate points of anomalous trading activity in order to flag potential pump-and-dump activity.The findings suggest that there are some signals in the trading data that might help detect pump-and-dump schemes, and we demonstrate these in our detection system by examining several real-world cases.Moreover, we found that fraudulent activity clusters on specific copyright baseball scoreboards for sale exchanges and coins.The approach, data, and findings of this paper might form a basis for further research into this emerging fraud problem and could ultimately inform crime prevention.