Rather bizarrely, Yobit exchange has announced that it will do a Pump and Dump of an unnamed cryptocurrency on the 11th of October.
They are planning to buy one random coin for 1 Bitcoin every 1-2 minutes, 10 times. The total buy amount will be 10btc.
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
Countdown to Pump and Dump on Yobit Exchange
In what seems like ‘we don’t give a damn’ moment, they have even put a countdown timer on their homepage.
They also made it clear in the email received by their subscribers that “Only one coin will be pumped, not 10”.
According to the comments section, followers seem shell-shocked.
Daily Volume Rising
However, this tactic has obviously paid off so far, since their daily volume spiked 181% after the announcement. Yobit is now ranked as 39th exchange on the Coin Market Cap with $33 million daily volume.
This crypto exchange is hosting 482 cryptocurrencies. 315 of those have less than $100 daily volume as of press time. It will be fairly easy to pump and dump them.
CFTC on Pump and Dump Schemes
Even though Pump and Dump schemes are believed to happen often on exchanges, they are still unlawful. Well, at least in the USA. Some of the exchanges are doing it covertly by organizing giveaways to the top 24hr volume traders. Yobit is the first crypto exchange which has announced publicly their intention by brazenly wording it as “pump and dump”.
The U.S. Commodity Futures Trading Commission – CFTC is on a mission to investigate and prosecute crypto pump and dump schemes.
As CFTC said: “Commonly, it is the people pulling the strings who get out first making the most in the scheme, and leaving everyone else scrambling to sell before losing their investment.”
Considering that Yobit was founded in Russia in 2015, but accepts US customers, it is unclear if CFTC has a jurisdiction to act in this case.
Other Fraudulent Claims
Yobit has a history of fraudulent claim investigations. In March 2017, Russian telecommunications regulator Roskomnadzor had apparently opened legislative proceedings against Yobit, according to reports.
WAVES also had an issue with Yobit exchange. Its token appeared as a BTC pair on Yobit at a stage when it was impossible to withdraw it from private Waves wallets.
It is left to be seen how the crypto community and regulators will react to the Pump. There is a fear this kind of activities may have a broader negative effect due to the potential to attract harsher regulations and restrictions.
UPDATE: Russian Exchange Yobit pumped Putin Coin
Yobit’s Pump and Dump of Putin Coin $PUT looked more like a pre-Pump and Dump.
This was recorded minutes before the official Pump and Dump started. $PUT was pre-pumped around 500%.
And Dumping was recorded right after the official “Pump” started:
Yobit sure knows how to attract attention and dump on their users.