A quarter of crypto tokens launched in 2022 saw steep price declines in just the first week of launch, according to a report by Chainalysis.
Creators of crypto token pump and dump schemes made an estimated $30 million in profits from selling off their holdings before the token value plummeted, blockchain-analysis firm Chainalysis said Thursday in a report.
Out of 40,521 crypto tokens that were launched and traded in 2022, about a quarter of them saw a drastic price decline in the first week, indicating possible pump and dump activity, the report said. Due to the relative ease at which bad actors can launch a new token and promote it on social media, the practice is becoming common in crypto, the Chainalysis 2023 Crypto Crime Report report said.
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