Cryptocurrency Exchange YoBit Announces “Pump Timer” For Altcoins
The cryptocurrency industry is prone to pump-and-dump schemes for quite some time now. It is unclear what YoBit is thinking at this stage. Things get much more complicated when exchanges publicly announce they will pump specific coins as well. This tends to happen with small-cap altcoins regularly.
YoBit’s Pumping Plans
The YoBit exchange has always been controversial. Concerns regarding cryptocurrency trading volume being faked have become more apparent over the years, and small altcoin exchanges have been scrutinized because of it. It primarily supports currencies and tokens nobody has ever heard of, that makes it an excellent place for pump groups to make some quick money.
Although it is unclear of YoBit is subject to fake volume, their current method of approach does not instill a lot of confidence. The exchange itself will buy 1 Bitcoin’s worth of a specific currency every 1-2 minute 10 times. In doing so, the price of said coin will be inflated massively, as well as its trading volume. More specifically, the exchange has made it clear they are launching their own pump group in the future.
YoBit Pump in 22 hrs: https://t.co/RIbW7OhKzM
We will buy one random coin for 1 btc every 1-2 mins 10 times (total buy amount – 10 btc).
— Yobit.Net (@YobitExchange) October 10, 2018
Some users assumed a phishing page was created tot rick YoBit users into giving up their credentials, yet the pump page is effectively hosted on the exchange’s normal website. Whereas some people assumed this was a joke at first, it would appear the claim is nothing but legitimate. A dedicated pump page has been added to the YoBIt exchange, further causing confusion as to what is going on exactly.
It is still possible YoBit is trying to send a clear message to the cryptocurrency community rather than actually pump coins. Their complete lack of communication regarding this particular project has people genuine concerned, and a marketing stunt like this can cost the company a lot of clients in very quick succession. The exact purpose of this new feature is very difficult to gauge at this point.
This “pump timer” will not help YoBit’s reputation by any means. Additionally, the platform basically does not have the best of reputations, as some coin developers have unsuccessfully tried to get their project delisted from the exchange because of this negative association. A fair few currencies listed on the exchange are dead or were simply designed to serve as a money grab.
All of this would go to show the necessity for decentralized crypto trading platforms. It will be interesting to observe how this venture plays out for YoBIt. With centralized entities, fake volume, pumps, and odd marketing stunts will remain ever present and give the industry a bad reputation.