Researchers Find Hundreds of Pump and Dump Scams, Develop Algorithm
- Workers at Imperial College London find that an average of two such scams happen every day.

An analysis performed by researchers at Imperial College London has found that around $7 million worth of cryptocurrency trading volumes are the result of pump and dump schemes.
Four seconds
According to MIT Technology Review, Jiahua Xu and Benjamin Livshits found that there are on average two such schemes every day in the cryptocurrency market.
They looked at one event which occurred on the 14th of November 2018. After scanning Telegram chat groups, which is where investors are typically notified that a pump operation is imminent, the researchers understood that the action was to commence at exactly 19:30 GMT. Four seconds into that minute, a group called 'Official McAfee Pump Signals', which has around 12,000 members, revealed that an almost worthless cryptocurrency called BVP was the target.
The first order was placed within a single second of the announcement, and the coin reached peak value 18 seconds later. After three and a half minutes, it was all over - the cryptocurrency was worth less than it was at 19:29.
They can't see you if you don't move
A pump and dump is a standard financial scam. It involves people with prior knowledge of the matter working together to buy lots of a certain asset, which drives up the price. Investors are excitable animals, and, attracted by the sudden movement, inevitably start buying it too. However the original pumpers are the only ones selling. Thus, they make a profit, and the later buyers are left holding a worthless asset.
Moreover, the instigators might have already purchased large amounts of the asset, giving them a massive head start. Insider trading is considered a serious crime -because it gives people the opportunity to make huge profits by cheating others.
In the worlds of electronic trading and cryptocurrency, the difference between a profit and a loss can be a matter of milliseconds. Xu and Livshits found that a different Telegram group announced the pump 21 seconds after Official McAfee Pump Signals - the poor souls in that group never stood a chance.
Between July and November, the researchers studied 236 such events, which were often preceded by someone buying large amounts of the pumped asset. They said: "The study reveals that pump-and-dump organizers can easily use their insider information to take extra gain at the sacrifice of fellow pumpers."
The research was reported in the context of finding a solution to the problem; Xu and Livshits claim to have developed an algorithm that can predict these scams by monitoring for unusual buying activity of a low-price cryptocurrency.
John McAfee John McAfee John McAfee is a well-known British-American computer programmer and businessman. He founded McAfee Associates, a software company, which operated from 1987 to 1994. Through the creation of McAfee, the world’s first commercial antivirus software, McAfee Associates experienced unprecedented success. After leaving McAfee, John became involved with companies like Future Tense Central, QuorumEX, Everykey, Luxcore, and MGT Capital Investments. John McAfee Transitions to CryptocurrenciesThrough the success of John McAfee’s ventures, his top net worth was estimated close to $100 million. Ultimately his investments nose-dived during the financial crisis of 2008 and experienced losses in the tens of millions of dollars. Apart from security software innovations, McAfee’s interest has become more widespread and includes industries such as organic antibiotics, smartphone apps, and cryptocurrency. McAfee also served as a political activist who lost to Gary Johnson in the 2016 election for the 2016 Libertarian Party nomination for President of the United States. Currently, McAfee has fled the United States after having returned in 2013 because he claimed that he had not paid taxes in 8 years he is now wanted to tax evasion in the U.S. In April of 2020, John McAfee announced that he was working on a digital privacy coin known as Ghost. Allegedly, Ghost will be able to be exchanged through the McAfee Dex decentralized exchange through atomic swaps and will be tradable against industry-leading cryptocurrencies. More recently, McAfee launched a cryptocurrency asset known as the ERC-20 token which is nicknamed “Epstein Did Not Kill Himself” found under ticker WHACKD although the token possesses scarcely any liquidity. John McAfee is a well-known British-American computer programmer and businessman. He founded McAfee Associates, a software company, which operated from 1987 to 1994. Through the creation of McAfee, the world’s first commercial antivirus software, McAfee Associates experienced unprecedented success. After leaving McAfee, John became involved with companies like Future Tense Central, QuorumEX, Everykey, Luxcore, and MGT Capital Investments. John McAfee Transitions to CryptocurrenciesThrough the success of John McAfee’s ventures, his top net worth was estimated close to $100 million. Ultimately his investments nose-dived during the financial crisis of 2008 and experienced losses in the tens of millions of dollars. Apart from security software innovations, McAfee’s interest has become more widespread and includes industries such as organic antibiotics, smartphone apps, and cryptocurrency. McAfee also served as a political activist who lost to Gary Johnson in the 2016 election for the 2016 Libertarian Party nomination for President of the United States. Currently, McAfee has fled the United States after having returned in 2013 because he claimed that he had not paid taxes in 8 years he is now wanted to tax evasion in the U.S. In April of 2020, John McAfee announced that he was working on a digital privacy coin known as Ghost. Allegedly, Ghost will be able to be exchanged through the McAfee Dex decentralized exchange through atomic swaps and will be tradable against industry-leading cryptocurrencies. More recently, McAfee launched a cryptocurrency asset known as the ERC-20 token which is nicknamed “Epstein Did Not Kill Himself” found under ticker WHACKD although the token possesses scarcely any liquidity. Read this Term
It would be unfair to say that the name 'McAfee' is synonymous with pump and dump schemes, but the eccentric computer programmer-turned-cryptocurrency evangelist has been implicated in a few. In December 2017 he announced that he would be promoting new coins on a regular basis, which naturally seemed suspicious to some, and in October 2018 he was implicated in a suit opened by the US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission against an investment firm called MGT Capital Investments, of which McAfee was once CEO.
It should be noted that there is no indication that John McAfee is connected with the aforementioned Telegram group.
An analysis performed by researchers at Imperial College London has found that around $7 million worth of cryptocurrency trading volumes are the result of pump and dump schemes.
Four seconds
According to MIT Technology Review, Jiahua Xu and Benjamin Livshits found that there are on average two such schemes every day in the cryptocurrency market.
They looked at one event which occurred on the 14th of November 2018. After scanning Telegram chat groups, which is where investors are typically notified that a pump operation is imminent, the researchers understood that the action was to commence at exactly 19:30 GMT. Four seconds into that minute, a group called 'Official McAfee Pump Signals', which has around 12,000 members, revealed that an almost worthless cryptocurrency called BVP was the target.
The first order was placed within a single second of the announcement, and the coin reached peak value 18 seconds later. After three and a half minutes, it was all over - the cryptocurrency was worth less than it was at 19:29.
They can't see you if you don't move
A pump and dump is a standard financial scam. It involves people with prior knowledge of the matter working together to buy lots of a certain asset, which drives up the price. Investors are excitable animals, and, attracted by the sudden movement, inevitably start buying it too. However the original pumpers are the only ones selling. Thus, they make a profit, and the later buyers are left holding a worthless asset.
Moreover, the instigators might have already purchased large amounts of the asset, giving them a massive head start. Insider trading is considered a serious crime -because it gives people the opportunity to make huge profits by cheating others.
In the worlds of electronic trading and cryptocurrency, the difference between a profit and a loss can be a matter of milliseconds. Xu and Livshits found that a different Telegram group announced the pump 21 seconds after Official McAfee Pump Signals - the poor souls in that group never stood a chance.
Between July and November, the researchers studied 236 such events, which were often preceded by someone buying large amounts of the pumped asset. They said: "The study reveals that pump-and-dump organizers can easily use their insider information to take extra gain at the sacrifice of fellow pumpers."
The research was reported in the context of finding a solution to the problem; Xu and Livshits claim to have developed an algorithm that can predict these scams by monitoring for unusual buying activity of a low-price cryptocurrency.
John McAfee John McAfee John McAfee is a well-known British-American computer programmer and businessman. He founded McAfee Associates, a software company, which operated from 1987 to 1994. Through the creation of McAfee, the world’s first commercial antivirus software, McAfee Associates experienced unprecedented success. After leaving McAfee, John became involved with companies like Future Tense Central, QuorumEX, Everykey, Luxcore, and MGT Capital Investments. John McAfee Transitions to CryptocurrenciesThrough the success of John McAfee’s ventures, his top net worth was estimated close to $100 million. Ultimately his investments nose-dived during the financial crisis of 2008 and experienced losses in the tens of millions of dollars. Apart from security software innovations, McAfee’s interest has become more widespread and includes industries such as organic antibiotics, smartphone apps, and cryptocurrency. McAfee also served as a political activist who lost to Gary Johnson in the 2016 election for the 2016 Libertarian Party nomination for President of the United States. Currently, McAfee has fled the United States after having returned in 2013 because he claimed that he had not paid taxes in 8 years he is now wanted to tax evasion in the U.S. In April of 2020, John McAfee announced that he was working on a digital privacy coin known as Ghost. Allegedly, Ghost will be able to be exchanged through the McAfee Dex decentralized exchange through atomic swaps and will be tradable against industry-leading cryptocurrencies. More recently, McAfee launched a cryptocurrency asset known as the ERC-20 token which is nicknamed “Epstein Did Not Kill Himself” found under ticker WHACKD although the token possesses scarcely any liquidity. John McAfee is a well-known British-American computer programmer and businessman. He founded McAfee Associates, a software company, which operated from 1987 to 1994. Through the creation of McAfee, the world’s first commercial antivirus software, McAfee Associates experienced unprecedented success. After leaving McAfee, John became involved with companies like Future Tense Central, QuorumEX, Everykey, Luxcore, and MGT Capital Investments. John McAfee Transitions to CryptocurrenciesThrough the success of John McAfee’s ventures, his top net worth was estimated close to $100 million. Ultimately his investments nose-dived during the financial crisis of 2008 and experienced losses in the tens of millions of dollars. Apart from security software innovations, McAfee’s interest has become more widespread and includes industries such as organic antibiotics, smartphone apps, and cryptocurrency. McAfee also served as a political activist who lost to Gary Johnson in the 2016 election for the 2016 Libertarian Party nomination for President of the United States. Currently, McAfee has fled the United States after having returned in 2013 because he claimed that he had not paid taxes in 8 years he is now wanted to tax evasion in the U.S. In April of 2020, John McAfee announced that he was working on a digital privacy coin known as Ghost. Allegedly, Ghost will be able to be exchanged through the McAfee Dex decentralized exchange through atomic swaps and will be tradable against industry-leading cryptocurrencies. More recently, McAfee launched a cryptocurrency asset known as the ERC-20 token which is nicknamed “Epstein Did Not Kill Himself” found under ticker WHACKD although the token possesses scarcely any liquidity. Read this Term
It would be unfair to say that the name 'McAfee' is synonymous with pump and dump schemes, but the eccentric computer programmer-turned-cryptocurrency evangelist has been implicated in a few. In December 2017 he announced that he would be promoting new coins on a regular basis, which naturally seemed suspicious to some, and in October 2018 he was implicated in a suit opened by the US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission against an investment firm called MGT Capital Investments, of which McAfee was once CEO.
It should be noted that there is no indication that John McAfee is connected with the aforementioned Telegram group.