The Bitcoin domain which is originally initiated with clean intentions in mind, was also, not spared by the hackers and scammers on this world. This is self-evident from various hacks and scams that have been witnessed in the Crypto space. Therefore, all the investors and cryptocurrency users are cautioned to carefully understand and practice safety measures. Failing to do so, might lead to unwanted conditions. There are also various secret Bitcoin holders known as Bitcoin Whales, which manipulate the bitcoin market by either buying or selling a large amount of Bitcoin.
Yobit is one of the most popular cryptocurrency exchanges, which, in recent days, has been struggling for its market sustainment and is trying to incorporate various measures to tackle the same. While other cryptocurrency exchanges attract customers through various incentives like reward programs, lower transaction fees or increased security measures but yobit has taken the marketing gimmicks to a next level. Yobit openly announced about its pump and dump scheme that it undertakes, in order to boost the trading activities in the cryptocurrency markets.
During the pump, Yobit buys various random coins for a certain amount of Bitcoin and immediately after pumping up to a certain price, the process of dumping is initiated creating artificial waves of the price. Some investors and traders use make use of the market volatility during this time period. This method of generating artificial traffic is regarded as illegal in most countries across the world. Yet Yobit pump and dump scheme seems to be working out very well. Yobit had also pre-announced one of its pump and dump activity which was undertaken on 11th October 2018.
Yobit has also been under controversies for many other reasons. Back in 2016, Yobit trading platform had pre-released the Waves/BTC trading pair, without the actual release of coins. The Crypto exchange has a very good record for its manipulative activities. The US Commodity Futures And Trading Commission along with US Department of Justice has charged legal implications on the exchange for such activities.
In 2017, even the Russian government banned the operations of Yobit, for possible frauds and data manipulation undertaken within its name.
The Yobit pump and dump schemes are openly announced on Twitter, where various users have expressed their distaste with respect to Yobit, for such shady activities. Some of them, in fact, have approached Coinmarketcap to delist the because of its intolerable activities. While some of the users are furious with the action, some of them consider it to be as a joke. There are also users which assume that at least, they are being transparent about their bad intentions. It is now the decision of the various regulators to classify them under suitable category and take necessary actions. Failing to do so, might lead to immense losses to the users of Yobit.
The crucial matter of concern is that Yobit never announces the name of the coin which is to be considered for its Yobit pump and dump scheme. By chance, if the investors get to know the coin which is to fluctuate, then they might have a good return, accordingly. On October 10th, 2018, the exchange revealed that they will be buying various Altcoins worth 10 Bitcoin in every 5 to 10 minutes.
Investments in the cryptocurrency market are very risky as some of the cryptocurrency exchanges themselves are not reliable enough to be considered. Therefore, one must hold the entire responsibility for their investments and think twice before choosing a cryptocurrency exchange for trading and investing in any digital asset or cryptocurrency.