YoBit crypto exchange pledges to pump coins at random
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
Crypto explained
Latest cryptocurrency news
- Ethereum price crumbles as dApps flee for cheaper platforms
- Bitcoin volatility at 6-month high as price direction looks uncertain
- Bitcoin price viciously dips to US$51,000 after hitting $1 trillion market cap
- Bitcoin crashes below $50,000 after more cryptic Elon Musk tweets
- Ethereum price crashes 15% overnight as cryptocurrency market drops
Picture: Shutterstock
