How can the supply of a cryptocurrency be manipulated?

3 answers

• Gaby MonrealFeb 07, 2025 · 6 months ago
  One method that can be used to manipulate the supply of a cryptocurrency is through a process called 'pump and dump.' This involves artificially inflating the price of a cryptocurrency by spreading positive rumors and creating hype, which attracts new investors. Once the price has reached a certain level, the manipulators sell off their holdings, causing the price to crash and leaving other investors with losses.
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• shravyaMay 05, 2021 · 4 years ago
  Another way to manipulate the supply of a cryptocurrency is through 'wash trading.' This involves creating fake buy and sell orders to create the illusion of high trading volume. By artificially inflating the trading volume, manipulators can create a false sense of demand and drive up the price of the cryptocurrency.
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• McCurdy EriksenJun 04, 2025 · 3 months ago
  As an expert in the field, I can tell you that supply manipulation is a serious issue in the cryptocurrency market. It is important for investors to be aware of the risks and to conduct thorough research before investing in any cryptocurrency. At BYDFi, we have implemented strict measures to prevent supply manipulation and ensure a fair trading environment for our users.
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