Twenty-four per cent of tokens created in 2022 share on chain characteristics of pump and dump schemes were scams according to Chainalysis.
In traditional finance, pump-and-dump schemes occur when holders of a tradable asset, such as stock in a company, heavily hype and promote the asset to other investors, causing the price to rise rapidly as new investors buy.
This would then allow the holders to sell their overvalued shares at a profit, causing the price to…
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