How Do I Sell My Crowdfunded Shares? Developing Exchanges and Markets to Trade Securities Issued by Start-Ups and Small Companies

The Anatomy of a Cryptocurrency Pump-and-Dump Scheme

“…In the conventional stock market, pump-and-dump operators favor microcap stocks due to high manipulability of their price [3]; we expect to observe a similar phenomenon in the crypto-market. To collect coins' market cap data, we use the public API from CoinMarketCap.…”

“…Bitcoin (BTC) is a typical pairing coin. 3 Crypto jargon for "advertise", "promote". 4 Crypto jargon for "hold".…”

“…-------------------------------- Pump-and-dump organizers' preference for small-cap coins resembles equity market manipulators' taste for microcap stocks [3,24], and can be explained by the empirical finding of Hamrick et al [18] and Li et al [23]: the smaller the market cap of the pumped coin, the more successful the pump would be. Price movement: Figure 13 depicts time series of hourly log returns of pumped coins between 48 hours before and 3 hours after a pump.…”

“…Lin [24] explains potential damage of various manipulation methods including pump-and-dump, front running, cornering and mass misinformation, and argues for swift regulatory action against those threats. Austin [3] calls for authorities' demonstration of their ability to effectively deter market manipulation such as pumpand-dump in exchanges for small-capped companies, in order to recover investors' confidence in trading in those markets, which would consequently foster economic growth.…”