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As early as October, the Australian Securities and Investments Commission (ASIC) revealed details of how it banned encrypted “pumping and dumping” Telegram groups.
One Pump and dump scheme It usually involves the use of social media to coordinate users to purchase a large number of tokens with few transactions in order to artificially inflate their prices. Then, after other investors who did not participate in the plan and FOMO participated in momentum trading, they cashed out with huge profits.
The new file is displayed, Application Specific Integrated Circuit Since the beginning of October, it has been seeking advice from Talis Putnins, a financial academic and encryption researcher.
The 38 slides Putnins showed to ASIC investigators showed that the plan of skyrocketing and slumping is cyclical, peaking again in 2018 and 2021. The presentation pointed out that they are often “related to overall market sentiment and prices.”
According to the presentation, from 2018 to October 2021, many factors have changed. During the six-month period in 2018, Putnins recorded more than 355 cases of crypto market manipulation.
He mentioned the “transparent pumping intentions” of these plans, and there were no “real attempts to ignite power.” The presentation stated that these plans are “fully open to everyone.”
The presentation detailed the Telegram group “Crypto Binance Trading | Signals & Pumps” On September 19, Frax Share (FXS), a fractional algorithmic stable currency system, skyrocketed 90% in less than a minute with a trading volume of 65 million US dollars.
“With our average output of each pump of US$400-80 million, peaking at 450%, we are ready to announce our next large pump,” the group’s announcement on September 13 said.
“Our main goal for this pump is to ensure that every member of our team can make huge profits. We will also try to increase the transaction volume by a very high percentage in the first few minutes to more than $100 million.”
What are the reasons behind the skyrocketing and plummeting plans?
The presentation cited the lack of legal risks, anonymity in the forum, and encryption as potential reasons for these groups, adding that “people think that encryption is not regulated, so the pump is legal.”
Australian newspapers can disclose new information in documents Right to use Request through freedom of information. The Australian newspaper released new information on December 28.
Last year, Punings co-authored Paper The headline is “The new wolf in town? The skyrocketing and plummeting manipulation in the cryptocurrency market.”
The report concluded that the skyrocketing and plummeting of cryptocurrencies caused “an extreme price distortion of 65% on average, abnormal trading volumes of millions of dollars, and substantial wealth transfers between participants”.
related: The goal of ASIC is to extract and dump Telegram groups
October 15th, Cointelegraph Report ASIC has been investigating plans across cryptocurrencies and traditional markets operating through social channels such as Twitter, Telegram and the Australian stock chat forum HotCopper.
At that time, a Telegram account named “ASIC” posted a message in the “ASX Pump Organisation” chat room, warning its 300 members that the regulator was “monitoring this platform” and its members were under investigation.
“It may be illegal to coordinate pumping for profit. We can view all transactions and access the identity of the trader. […] You risked a criminal record, including fines and imprisonment of more than $1 million. “
An ASIC spokesperson told Cointelegraph at the time: “Even if the cryptocurrency/product involved in the activity may not be a financial product under the “Company Law”, the practice of skyrocketing and falling is also worrying because it may cause investor losses and cause unnecessary Loss. Prices fluctuate.”
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