Analysts name social networks used to manipulate cryptocurrency prices

According to cryptocurrency analysts, Telegram and Discord have become the most popular social networks for pumping and dumping cryptocurrencies. We will discuss these methods of manipulating the value of digital assets in more detail.

Pump and dump is a type of cryptocurrency fraud in which attackers artificially increase and then decrease the value of a digital asset. Usually, this happens to popularize new and unknown coins, the main goal of which is to attract as many investors as possible, maximize the price growth, and steal all investments.

Usually, entire fraudulent groups are involved in pump and dump, organizing their activities on Telegram and Discord, as these social networks are easy to work in and less controlled. As soon as a new cryptocurrency appears on the market, they decide that it’s time to pump out funds — participants in Telegram and Discord channels receive the so-called «crypto-pump signal «- and start trading the required cryptocurrency. Since people are often guided by emotions rather than rational decisions, when they notice the growth of a coin that is still worth «reasonable money» or read about it through the communication channels of an influencer (opinion leaders receive considerable funds for advertising fake cryptocurrencies), users start investing their own savings. However, in the case of the artificially increased value of some digital assets, this is a one-way ticket.

We recently told you about BitBoy Crypto, a well-known blogger in the crypto world who was accused of pimping fraudulent cryptocurrencies. In his video, BitBoy talked about the benefits of the DOCK digital asset. However, the blogger said that it was an advertising integration only at the end of the video. Due to this, most viewers did not notice the fact that it was an advertisement and therefore perceived it as a full-fledged and unbiased analysis. After the video was published, investors began actively investing in the new cryptocurrency, which caused the value of DOCK to rise and then plummet.

Even billionaire and Tesla CEO Elon Musk is suspected of manipulating the value of the cryptocurrency, as he has repeatedly expressed his support for DOGE, and recently one of his companies announced that it will start accepting payments in this cryptocurrency.