New Ethereum Tokens Reportedly Targets of Pump and Dump Schemes in 2023

By: Eva Baxter

A new consensus suggests that a majority of Ethereum tokens introduced in 2023 may have been targets of pump and dump schemes, according to multiple analytical studies. Despite appearing potentially scammy, these tokens represented just 1.3% of Decentralized Exchange (DEX) volume that year, hinting that the impact on traders was relatively minor.

The studies found possible pump and dump patterns present in about 54% of the tokens listed in 2023. While these findings signal potential market manipulation, they also underscore the savvy tendencies of the majority of traders who avoided falling for these tactics.

This market scenario sheds light on the need for effective regulatory measures and increased trader education in the crypto landscape.