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Chainlink Suspected of Being Pump-and-Dump Scam by Analytics Company AnChain.AI

  • Alex Dovbnya
    📰 News

    After stellar gains in 2019, Chainlink is sitting at 20th place on CMC with a market cap of $625 mln

Chainlink Suspected of Being Pump-and-Dump Scam by Analytics Company AnChain.AI
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Chainlink, the 20th biggest coin by market cap, is most probably your textbook example of a pump-and-dump scam. This revelation has been made Blockchain analytics firm AnChain.AI.

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A coordinated pump-and-dump scheme

As explained by U.Today, “pump-and-dump” is the practice of artificially inflating the asset’s price to hook the investors’ interest. Obviously, only pump organizers and the inner circle are able to profit off such schemes after dumping their bags on the herd of uninitiated buyers.

After analyzing the trading of the LINK token from Apr. 1 till July 26, AnChain.AI has concluded that there is a number of addresses that routinely trigger rounds of pump-and-dumps. One can allegedly predict when another price move takes place by keeping tabs on these particular wallets.

Suspicious LINK addresses
Image by AnChain.AI

On June 29, LINK reached its current ATH of $4.36 on the heels of its Coinbase listing. However, it turns out that a small number of traders were responsible for this enormous growth.

The market cap of Chainlink has dwarfed by more than $600 mln since June. At the time of writing, it is trading at $1.78.

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The Chainlink team under pressure

According to SmartContract CEO Sergey Nazarov, there is nothing that they can do about these manipulations given that the market for their token exists apart from Chainlink. Moreover, the company vehemently denies its involvement in these pump-and-dump schemes. U.Today has reached the Chainlink team and Nazarov himself for comment.

Chainlink developers have also been accused of dumping batches of 700,000 LINK on the open market. This selling spree, which is supposed to ramp up the company’s operations, conveniently came after the token hit its ATH.

Cover image via www.123rf.com
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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Crypto Crime: 21-Year-Old Australian Woman Faces 53 Charges for Laundering Stolen Funds with Cryptocurrency

  • Alex Dovbnya
    📰 News

    Jasmine Vella-Arpaci, who was part of the major identity fraud ring, faces up to 53 charges after stealing millions of dollars

Crypto Crime: 21-Year-Old Australian Woman Faces 53 Charges for Laundering Stolen Funds with Cryptocurrency
Contents

On Sept. 17, Jasmine Vella-Arpaci, a 21-year-old woman from Australia, made her first court appearance after being accused of shipping millions of dollars with the help of crypto. The young mother has been charged with 53 counts of fraud and theft.

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A multi-million identity fraud

According to the Australian Securities and Investments Commission (ASIC),.the group of criminals, whose members referred to themselves as “Team Awesome,” would purchase stolen sensitive information on the dark web to open fake bank accounts in Australia. The funds were stolen from superannuation accounts and share-trading accounts of the gang’s unsuspecting victims.

The money was then transferred money to their accomplice in Hong Kong to trade expensive jewelry before sending it back home via cryptocurrencies.

Cybersecurity threats such as data breaches and financial system attacks are a major concern for ASIC and we will continue to pursue not only cyber-related market and superannuation offending but also the need for institutions to maintain their obligations to ensure they have adequate cyber resilience, says ASIC deputy chair Daniel Crennan

The investigation into the major crime syndicate continues with further arrests expected.

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Crypto scams on the rise

As reported by U.Today, cryptocurrencies scams have grown by more than 200 percent in Australia in 2018 with victims losing about $6.1 mln.

In 2019, this number could be easily topped. Back in July, an elderly couple lost a whopping 900,000 to an elaborate crypto scam, thus wasting all their retirement savings.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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