In the last years, cryptocurrencies are increasingly popular. Even people who are not experts have started to invest in these securities and nowadays cryptocurrency exchanges process transactions for over 100 billion US dollars per month. However, many cryptocurrencies have low liquidity and therefore they are highly prone to market manipulation schemes.In this paper, we perform an in-depth analysis of pump and dump schemes organized by communities over the Internet. We observe how these communities are organized and how they carry out the fraud. Then, we report on two case studies related to pump and dump groups. Lastly, we introduce an approach to detect the fraud in real time that outperforms the current state of the art, so to help investors stay out of the market when a pump and dump scheme is in action.

Pump and dumps in the Bitcoin era: real time detection of cryptocurrency market manipulations / La Morgia, Massimo; Mei, Alessandro; Sassi, Francesco; Stefa, Julinda. - (2020), pp. 1-9. (Intervento presentato al convegno 29th International Conference on Computer Communications and Networks (ICCCN) tenutosi a Honolulu, HI; USA) [10.1109/ICCCN49398.2020.9209660].

Pump and dumps in the Bitcoin era: real time detection of cryptocurrency market manipulations

La Morgia, Massimo;Mei, Alessandro;Sassi, Francesco;Stefa, Julinda
2020

Abstract

In the last years, cryptocurrencies are increasingly popular. Even people who are not experts have started to invest in these securities and nowadays cryptocurrency exchanges process transactions for over 100 billion US dollars per month. However, many cryptocurrencies have low liquidity and therefore they are highly prone to market manipulation schemes.In this paper, we perform an in-depth analysis of pump and dump schemes organized by communities over the Internet. We observe how these communities are organized and how they carry out the fraud. Then, we report on two case studies related to pump and dump groups. Lastly, we introduce an approach to detect the fraud in real time that outperforms the current state of the art, so to help investors stay out of the market when a pump and dump scheme is in action.
2020
29th International Conference on Computer Communications and Networks (ICCCN)
cryptocurrencies; fraud detection; market manipulation
04 Pubblicazione in atti di convegno::04b Atto di convegno in volume
Pump and dumps in the Bitcoin era: real time detection of cryptocurrency market manipulations / La Morgia, Massimo; Mei, Alessandro; Sassi, Francesco; Stefa, Julinda. - (2020), pp. 1-9. (Intervento presentato al convegno 29th International Conference on Computer Communications and Networks (ICCCN) tenutosi a Honolulu, HI; USA) [10.1109/ICCCN49398.2020.9209660].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/1446406
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