Start Submission Become a Reviewer

Reading: WHY ARE CRYPTOCURRENCIES VULNERABLE TO PUMP-AND-DUMP SCHEMES IN EUROPE?

Download

A- A+
Alt. Display

Opinion Articles

WHY ARE CRYPTOCURRENCIES VULNERABLE TO PUMP-AND-DUMP SCHEMES IN EUROPE?

Author:

Jorge E. Constantino Torres

Master candidate in International Technology Law at Vrije Universiteit (VU) Amsterdam, The Netherlands., NL
About Jorge
Jorge Constantino is currently a Master candidate in International Technology Law at Vrije Universiteit (VU) Amsterdam, The Netherlands. In 2015, he graduated as a Bachelor of Laws from Queensland University of Technology (QUT), Brisbane, Australia. Since, he has worked in legal practice in Australia and currently works as a sessional academic teaching Law at Queensland University of Technology (QUT).
X close

Abstract

Cryptocurrency is a digital exchange medium stored in the Distributed Ledger Technology (DLT) and form the basis for the term crypto-assets. This paper focuses on the group of cryptocurrencies (or crypto-assets) that belong to Public Permissionless Blockchains and explains historical pump-and-dump, and how this old scheme appears to be applied now to cryptocurrency trading. This work explores the nature of the blockchain ecosystem, where cryptocurrencies exist, and proposes that ironically the encryption and immutability nature of the blockchain make cryptocurrencies vulnerable to pump-and-dump schemes. The lack of adequate regulation in Europe leaves cryptocurrencies vulnerable to pump-and-dump schemes causing an overall effect of vulnerable consumers expossed to fraudsters. Cryptocurrency pump-and-dump also affects investors, the development of cryptocurrencies, and the blockchain itself.

 

How to Cite: Constantino Torres, J.E., 2022. WHY ARE CRYPTOCURRENCIES VULNERABLE TO PUMP-AND-DUMP SCHEMES IN EUROPE?. Amsterdam Law Forum, 14(1), p.8. DOI: http://doi.org/10.37974/ALF.444
Published on 12 May 2022.

Downloads

  • PDF (EN)

    comments powered by Disqus