YoBit crypto exchange pledges to pump coins at random

Posted: 11 October 2018 4:03 pm
Cryptocurrency trading
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Well. Alrighty then.

Russian cryptocurrency exchange YoBit has previously been in the spotlight for allegedly listing and selling coins that it doesn't own and unusual price activity.

It's now pledged to transparently foster that unusual price activity by pumping random coins on its own exchange. So that's something.

Initial speculation in the Twittersphere suggested that YoBit's Twitter account may have been hacked, but nope, the announcement is on its site too, in all its glory.

Um. What?

It's often said that cryptocurrency markets are largely unregulated, but that doesn't mean that fraudulent activities like price manipulation suddenly become non-fraudulent just because they use a cryptocurrency medium.

Either YoBit has the world's greatest or the world's worst legal team on side. Or it's just gone off the deep end.

It's reasonable to assume that it won't actually be splashing out 1 BTC to random coin holders each time. The most likely path could be that it just buys from itself to artificially pump prices while pocketing the BTC itself.

It's not entirely clear what that's all in aid of though. A reasonable suspicion might be that it pumps certain definitely-not-random coins and then starts unloading its own stash onto any exchange customers who are sufficiently misinformed to FOMO into the pump.

Maybe it's just really hard up for funding in the bear market, and is hoping a Twitter announcement is enough to say "well, we warned them" if and when it's taken to task for dumping on its own customers. Or perhaps it's just an equally zany and misguided PR exercise. Or maybe someone filled the YoBit office water cooler with a bad batch of homemade vodka.

At any rate, surely there's no way anyone would be misguided enough to buy into an obvious pump and dump.

Well. Alrighty then.

Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VET, XLM, BTC, ADA

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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