Feb 17, 2023
$4.6 Billion Invested in Suspected Crypto “Pump and Dump” Schemes
Cryptocurrency investors were duped out of an estimated $4.6 billion in 2022, with the majority of the losses stemming from “pump and dump” schemes.
According to a recent report from blockchain analytics firm Chainalysis, nearly 10,000 tokens launched on the BNB Smart Chain and Ethereum blockchains last year have been identified as potential “pump and dump” schemes.
In a “pump and dump” scheme, the creators of a token use a combination of false statements, hype, and FOMO to entice investors to buy in, while they secretly sell their stake in the scheme at an inflated price.
Chainalysis estimated that investors spent $4.6 billion on the more than 9,900 tokens identified as potential pump and dump schemes. Of the 1.1 million tokens launched in 2022, only 40,500 were deemed “worth analyzing” as potential pump and dump schemes.
The most prolific creator Chainalysis identified was suspected of launching 264 such tokens last year, and the firm estimated that just 445 individuals or groups were behind the tokens. These creators are suspected to have made a collective $30 million in profits from selling their holdings.
Despite the concerning statistics, Chainalysis also reported that revenues from crypto scams were cut almost in half in 2022 due to depressed crypto prices.
The current state of the crypto market has led to an increase in NFT marketing and promotion. NFTs are digital assets that are unique and non-fungible, and they are becoming increasingly popular as a means of investing.
NFTs offer investors the potential for high returns and can be used to promote products, services, or even art. As such, many companies are now turning to NFT marketing agencies to help them promote their NFTs.
These agencies specialize in creating engaging campaigns that use a variety of channels, such as Twitter and YouTube, to reach potential investors. They also provide strategic advice on how to best market and promote NFTs in order to maximize returns.
For those looking to sell NFTs, there are a number of options available. From selling directly through a marketplace to working with a web3 agency, NFT sellers have a variety of options to choose from.
Ultimately, the success of any NFT marketing campaign will depend on the quality of the asset, the marketing strategy employed, and the target audience. By working with a knowledgeable NFT marketing agency, NFT sellers can maximize their chances of success.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
