1. Pump-and-Dump and market manipulation are increasing.
One of the popular schemes in the cryptocurrency market is pump-and-dump—where some individuals or groups create hype to attract impatient investors, then sell when the price reaches a high, causing losses.
The steps are:
1. First, a low-traded coin is selected.
2. Hype is spread on social media or news channels.
3. Once the situation is under control, many people start buying—there is a rapid rise in price.
4. In the next phase, the main drivers start selling—investors face huge losses as the price collapses in an instant.
2. Pump and wash trading are increasing.
Wash trading is a strategy—where an individual or bot buys and sells the same coin multiple times to create the appearance of financial activity, while there is actually no real market participation. This deceives investors.
3. Banks, regulators, and social media are creating severe risks.
Due to the cryptocurrency market being sanctioned and expensive in the United States, the Trump administration is planning to create a 'crypto capital'—which increases risks for investors, especially due to the volatility caused by meme coins and sensational hype.
4. The impact of numerous crypto scams.
According to an FBI report, in 2023, losses from crypto scams reached $5.6 billion—a 45% increase compared to the previous year. Popular scams include: phishing, Ponzi schemes, rug pulls, and pump-and-dump schemes.