The Economics of Cryptocurrency Pump and Dump Schemes

Hamrick, JT; Rouhi, Farhang; Mukherjee, Arghya; Feder, Amir; Gandal, Neil; Moore, Tyler; Vasek, Marie

doi:10.2139/ssrn.3303365

Cited by 45 publications

(31 citation statements)

References 19 publications

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“…The failure rates of ICOs have attracted scrutiny from regulators, and a number of empirical studies document evidence of fraud (Hamrick et al 2018, Liebau and Schueffel 2019, Cohney et al 2018. Even if an ICO occurs without market manipulation such as "pump and dump" schemes, no legal safeguards prevent the issuer from absconding with the proceeds, nor is there accountability via audits or oversight through corporate governance of promoters' use of proceeds.…”

Section: White Papers and Other Bonding Devicesmentioning

confidence: 99%

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Howell

Niessner

Yermack

2019

The Review of Financial Studies

404

224

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Initial coin offerings (ICOs) have emerged as a new mechanism for entrepreneurial finance, with parallels to initial public offerings, venture capital, and presale crowdfunding. In a sample of more than 1,500 ICOs that collectively raise ${\$}$12.9 billion, we examine which issuer and ICO characteristics predict successful real outcomes (increasing issuer employment and avoiding enterprise failure). Success is associated with disclosure, credible commitment to the project, and quality signals. An instrumental variables analysis finds that ICO token exchange listing causes higher future employment, indicating that access to token liquidity has important real consequences for the enterprise.

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Section: White Papers and Other Bonding Devicesmentioning

confidence: 99%

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Howell

Niessner

Yermack

2019

The Review of Financial Studies

404

224

View full text Add to dashboard Cite

show abstract

“…These patterns were also evidence of market manipulation. Among the cryptocurrencies, the ones with small market capitalization, a low traction volume, and trading in fewer exchanges were more prone to market manipulation [168].…”

Section: Market Manipulation By Whale Addressesmentioning

confidence: 99%

Knowledge Discovery in Cryptocurrency Transactions: A Survey

et al. 2021

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Cryptocurrencies gain trust in users by publicly disclosing the full creation and transaction history. In return, the transaction history faithfully records the whole spectrum of cryptocurrency user behaviors. This article analyzes and summarizes the existing research on knowledge discovery in the cryptocurrency transactions using data mining techniques. Specifically, we classify the existing research into three aspects, i.e., transaction tracings and blockchain address linking, the analyses of collective user behaviors, and the study of individual user behaviors. For each aspect, we present the problems, summarize the methodologies, and discuss major findings in the literature. Furthermore, an enumeration of transaction data parsing and visualization tools and services is also provided. Finally, we outline several gaps and trends for future investigation in this research area.

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“…Abundant evidence exists regarding the high volatility of cryptocurrency markets. 153 Several factors contribute to the existing volatility in cryptocurrency markets.…”

Section: J Market Stabilitymentioning

confidence: 99%

Stable Cryptocurrencies

2019

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The authors examine the emergence and proliferation of stable cryptocurrencies and their uses. After evaluating the core shortcomings associated with fiat currencies, the authors highlight the benefits of stable cryptocurrencies for monetary policy making, overall market stability, and their bilateral impact on the emergence of decentralized commerce. The transition to digital currencies has already started. It is a matter of time until the use cases and applications of stable cryptocurrencies become more mainstream.

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The Economics of Cryptocurrency Pump and Dump Schemes

Cited by 45 publications

References 19 publications

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales

Knowledge Discovery in Cryptocurrency Transactions: A Survey

Stable Cryptocurrencies

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