Students from multiple universities conducted an interesting joint study. It sheds light on how pump and dump schemes evolved to new places such as social media and other web-based communication channels to influence the retail investor community.

Monitoring social media is a significant factor. It is sometimes hardly addressed compared to other relevant issues for the future regulation of the cryptocurrency environment.

A snippet from the conclusion:

“The proliferation of cryptocurrencies and changes in technology have made it relatively easy (and virtually costless) for individuals to coordinate their activities. In terms of scope, we found that this pump and dump phenomenon is widespread on both Discord and Telegram. Our analysis has implications for regulatory policy. Regulators could perhaps significantly disrupt future pump and dump schemes by focusing their efforts on the 24 most prolific exchanges and pump channels. Far from insurmountable, a concentrated ecosystem makes enforcement tractable.”

Stockpulse is an industry leader in Crypto Surveillance in social media. Discord, Twitter, Reddit, YouTube, and countless other sources are being monitored to gather millions of messages daily. Using Natural Language Processing and Deep Learning methods to analyze and interpret millions of messages in real-time and 24/7 with access to unique information. We assist compliance departments to uncover modern pump and dump schemes and any other type of market abuse.

Source: https://bfi.uchicago.edu/wp-content/uploads/Gandal-Neil-etal-An-examination-of-the-cryptocurrency-pump-and-dump-ecosystem.pdf

Authors: JT Hamrick, Farhang Rouhi, Arghya Mukherjee, Amir Feder, Neil Gandal, Tyler Moore, and Marie Vasek∗