Cryptocurrency Exchange YoBit Announces Scheme to Pump Random Cryptos

Cryptocurrency Exchange YoBit Announces Scheme to Pump Random Cryptos

Francisco Memoria
  • Crypto exchange YoBit has recently announced it'll pump random coins on its platform using 1 BTC.
  • The move may be considered a pump and dump scheme in the eyes of regulators.

YoBit, a Russia-based cryptocurrency exchange, has recently announced it’s set to pump “one random coin” using 1 bitcoin every 1-2 minutes, a move that could help illiquid coins on its platform surge.

Via Twitter, the exchange detailed it will pump random cryptocurrencies a total of 10 times. The pump is set to occur in less than two hours at 15:00 UTC, according to a timer published on YoBit’s website.

The cryptocurrency community responded to YoBit’s tweet with skepticism, as pumping a random cryptocurrency to then presumably sell it is known as a ‘pump and dump’ scheme. These are illegal in traditional markets, as they’re seen as market manipulation.

YoBit has in the past made headlines when Russian telecommunications regulator Roskomnadzor opened legislative proceedings against it over alleged fraudulent activity. According to Forbes Ukraine, the regulator was set to block its website from Russian IP addresses as it was seen as an “unreliable resource.”

Last year, an investigation conducted by Business Insider found traders were engaging in ‘pump and dump’ schemes in YoBit’s platform, after organizing them via Telegram. As CryptoGlobe reported earlier this year, some crypto influencers orchestrating these schemes were reported to federal authorities.

In the last 24-hour period, YoBit traded a total of $34 million worth of cryptocurrency, with its BCH/BTC trading pair being the most popular one. The exchange, according to available data, has over 480 cryptocurrencies on its platform, although most have negligible trading volumes.

Many in the space believed the exchange - with very little public information about it - got hacked for posting the tweet. After realizing it wasn’t hacked, some pointed out this could be a way for it to get its platform on the map, while one user tagged the official Twitter account of the US Securities and Exchange Commission (SEC).

CryptoGlobe reached out to YoBit but the exchange wasn’t immediately available for comment. This article will be updated once we hear back from it.