The U.S.-based cryptocurrency exchange Bittrex just announced they’ll be implementing measures to crackdown on pump and dump (P&D) schemes in a new update to their terms of service.
Being the second-biggest crypto exchange in the world at press time, Bittrex has become a popular playground for schemers as of late. P&D schemes occur, of course, when a small group of investors artificially inflate the value of a coin only to dump said coin immediately thereafter, causing a price crash.
Now, Bittrex is saying no more. Per new anti-manipulation initiatives, the exchange is preparing to take action to prevent these ploys on their platform going forward:
“Bittrex actively discourages any type of market manipulation, including pump groups. Consistent with our terms of service, we will suspend and close any accounts engaging in this type of activity and notify the appropriate authorities.”
Indeed, so-called “pump groups” abound on Telegram and Slack, organizing acute pumps that leave non-privy investors wrecked more times than not.
– Orders older than 28 days will be removed
– Minimum allowable trade size up to ~$8 a pop
– tick size will scale up to trading conditions (higher value a coin is, the less small of increments you can trade)
– Pump n dump groups get rekt pic.twitter.com/ZmYsdvMgmF
— The Crypto Dog📈 (@TheCryptoDog) November 25, 2017
And anyone who’s used Bittrex over the past few months has surely seen the problem firsthand. In recent weeks, Bittrex’s “Top Earner” slot was routinely held by no-name spamcoins that would oftentimes acutely shoot up in value more than 100 percent before crashing back down once more. This was clearly the work of P&D groups.
Hosting 300 various altcoins, Bittrex had been a prime target for these schemes hitherto.
But now that Bittrex is going so far as to threaten the involvement of law enforcement authorities, it’s likely these P&D scams will drop off considerably on the exchange in the weeks ahead.
As part of the anti-manipulation campaign, Bittrex will be raising minimum order sizes and terminating open orders older than 28 days henceforth.
TLDR: The popular crypto exchange Bittrex just updated their terms of service, declaring that any users involved in “pump and dump” schemes will be suspended.