• A recent report by Chainalysis found that 24% of tokens launched in 2022 experienced a significant decline in price within the first week of launch.
• Many of these tokens showed characteristics similar to pump-and-dump (P&D) schemes, such as misleading statements and “honeypot” coding preventing buyers from selling their tokens.
• Data pointed to 445 unique wallets belonging to either individuals or groups as being responsible for 24% of the suspected P&D schemes.
Almost 25% of Tokens Launched in 2022 Resemble P&D Schemes
A recent report by Chainalysis revealed that almost a quarter of tokens launched in 2022 experienced a significant price decline within the first week of launch – indicating they may be part of pump-and-dump (P&D) schemes.
What are P&D Schemes?
P&D schemes involve heavily promoting an asset with often misleading statements, causing its price to increase significantly. After it reaches a certain level, its holders then sell their holdings at an overvalued price, causing its value to plummet drastically.
Data Points to Same Crowd Responsible for P&D Schemes
The data revealed that 445 unique wallets belonging to either individuals or groups were responsible for 24% of the suspected P&D schemes – with one individual launching 264 tokens throughout the year.
Suspected Honeypot Coding Found on Projects
The 25 largest projects with the biggest drops within the first week all contained „honeypot“ coding that prevented new buyers from selling their tokens – further pointing towards possible P&D activities.
