Crypto Disrupt published an article on April 26, 2018, relating to the Nasdaq CEO agreeing with the SEC that digital assets need to be regulated. The article also referenced a very detailed Steemit post where the crypto community is trying to self-regulate the ecosystem. The community feels that self-regulation will be better than draconian measures taken by the “old guard” to protect their interests.
The author of the Steemit article that exposed the pump and dump scheme wrote: “I’ve already contacted the SEC, FBI, and other federal authorities regarding their activities on the market. I have all intentions of making an in-person visit either today (April 25th, 2018) or tomorrow to deliver all of these screenshots.” Reading through the comments posted by Steemit users there is a clear approval of the author’s stance against these delinquents.
“Truth be told, this kind of activity hurts everyone.”
“Good job man and yes this is illegal see the official statement from the CFTC.”
“This reminds us that we ALWAYS need to do our own research before investing in a coin.”
“pumps and dumps run by scamstars like these are the reason why more than half of the people are afraid of investing in cryptos….”
Following the publication of the article on Steemit, some of the crypto influencers that were implicated have responded with their feedback. Bitcoin Bravado published a PDF on Google Drive in which they said the Steemit article is slanderous and gave their reasons why. As pointed out by many readers, false claims in written form would be libelous rather than slanderous. The PDF document outlines the motives of the author for publishing the article, but that doesn’t mean the content of the article is in any way inaccurate. Bitcoin Bravado outlines their company structure and attempts to distance themselves from the individuals mentioned in the article. The rebuttal stated: “We have also never accepted payment or compensation for covering ANY coin, ever.”
Ivan S, @CryptoGat, tweeted an apology for his involvement in the incident and understands that the community is angry and that he has now lost the trust of some members. In the apology, he wrote, “I have no problem being made an example of from my actions, as long as it progresses the community forward and helps to create awareness of what is going on.” Some members of the crypto community have acknowledged that at least he regrets what he did and accepts the consequences. For many in the crypto community, it hasn’t come as any surprise that pump and dump schemes are being run by industry influencers, and hopefully, this incident will be a warning to others.
The Steemit article is not the only attempt to stop the scammers in the crypto community from going about their business. The Cryptocurrency Investing Facebook group, which has over 63,000 members, included a post of an investor scamming the scammers. A member of the Facebook group had received several bogus emails from companies masquerading as known businesses in the crypto ecosystem. The emails invited him to promote ICOs on their websites at preferential rates, but he had noticed that the email addresses being used were not genuine.
He gained the trust of the scammers by replying with details about his digital marketing agency and asked them to send him a small amount of crypto to prove that they were genuine businesses. He received two payments from the bogus companies, which he rightly has no intention of returning.
There are dozens of Facebook groups and Telegram channels warning cryptocurrency investors of the latest scams and even websites dedicated solely to helping newcomers to crypto to find their feet. One such website is The Bitcoin Pub, which was established in the summer of 2017 by brothers John and Peter Saddington. It provides help and advice for all aspects of crypto including mining, investing, and security with over 15,000 members as of April 2018.
Financial analyst, smartphone app designer, technical writer, and crypto enthusiast. Blockchain verified graduate of MOOC 9, DFIN-511: Introduction to Digital Currencies, run by the University of Nicosia.