Cryptocurrency exchange YoBit is starting its own pump schemes on random coins. The Russia-based exchange is going to buy 10 BTC of one coin, spread out in ten buy orders over the course of 10 to 20 minutes. The exchange doesn’t announce which coin they will pump in value, but it does show a timer to indicate when their next pump will begin.
A pump-and-dump scheme is a form of fraud. It attempts to artificially boost the value of an asset. The idea is that you get in on the pump early, and jump out near the top. The value will plummet as fast as it was rising, which will leave some investors with major gains and many others with big losses.
This is not the first time YoBit has become the center of suspicious activities. In November 2017 traders used YoBit for pump and dump schemes that were organized using the Telegram messenger app.
The exchange has a daily trading volume around 32 million dollars. It’s currently the 50th largest exchange. BitMex is the biggest exchange with 2.7 billion dollars, followed by Binance ($1.1 billion) and Bithumb ($795 million).