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Understanding Market Manipulation Tactics in Altcoins

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by Tando Nkube

2 months ago


The altcoin market, known for its high volatility and rapid price fluctuations, has become a playground for market manipulators. Recent reports highlight the various tactics employed by these individuals, which often leave retail investors vulnerable to significant financial losses. According to the authors of the publication, it is concerning that these manipulative practices are becoming increasingly sophisticated and harder to detect.

Pump-and-Dump Schemes

One of the most common strategies is the pump-and-dump scheme, where manipulators artificially inflate the price of an altcoin through misleading promotions. Once the price reaches a peak, they sell off their holdings, causing the price to plummet and leaving other investors with worthless assets.

Insider Trading

  • Insider trading is another tactic that has gained traction in the altcoin space.
  • Individuals with access to non-public information about upcoming developments or partnerships can make trades that capitalize on this knowledge.

The Need for Vigilance

The lack of regulatory oversight in many altcoin markets exacerbates these issues, making it crucial for investors to conduct thorough research and remain vigilant against potential scams.

In a recent turn of events, Fetch.ai has accused Ocean Protocol of misconduct involving 84 million tokens, escalating tensions within the cryptocurrency sector. For more details, see the full story here.

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