An average-sized crypto exchange YoBit has been working on an initiative, trust me it is nothing like we have witnessed in the crypto exchange game. YoBit plans to randomly pump coins to artificially push up their prices in order to entice more traders to its platform.
Randomly Pumping Crypto
“We will buy one random coin for 1 btc every 1-2 mins 10 times (total buy amount – 10 btc).”
There are speculations that for a global crypto ecosystem which stands at $12 billion in daily volume, this pumping of tokens might not be really significant but it could definitely lead to an increase in thinly-traded microcap altcoin markets.
As most institution would say that their account was hacked when some information that doesn’t align with what they stand for is posted on their official social media account, it is not so in this case, or perhaps if the hacker probably got hold on their website as well because a countdown is ongoing on the website to confirm the tweet. Some users on several social media platforms have tagged various regulatory bodies and have made inquiry into the legality of this decision as every finger is pointing at its illegality.
Is This Even Legal?
There was an earlier report stating that the U.S. Commodity Futures Trading Commission sometimes this year, issuing a customer advisory on crypto pump-and-dump schemes, describing them as illegal. In the face value of this scheme, it would pass for a pump-and-dump scheme, but it would still be subjected to the regulatory competence of financial regulators to decide whether or not it is market manipulation.
As at last week, CFTC Chairman J. Christopher Giancarlo said that the agency was “very focused on the fraud and manipulation aspects of cryptocurrency markets.” According to a Wall Street Journey report, crypto-related enforcement actions constitute a significant increase in the size of civil penalties exacted by the CFTC in 2018.
According to CoinMarketCap, YoBit is ranked at 51st-largest cryptocurrency exchange in the world, the yardstick used here is by the adjusted daily trading volume. The crypto exchange has processed $19 million worth of trade over 482 markets in the space of 24 hours and has realized way more than $918 million in volume over the past month.