BlackRock has launched the iShares Bitcoin ETF (IBIT) on Cboe Canada, offering Canadian investors access to Bitcoin through brokerage accounts.

The S&P 500 rose 0.16% as focus shifts to inflation data and earnings reports from major banks. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.16%, with Bitcoin and Ether dropping by 1.14%  and 4.65%, respectively in the past 24 hours.

Today's top performer is AAVE, which surged 4.3% after the announcement of Aave and GHO's expansion across networks for broader integration.

Aave (AAVE), founded in 2017, is a decentralized lending platform on Ethereum for lending, borrowing, and earning interest on 17 cryptocurrencies. It uses smart contracts, collateral for loans, and aTokens for interest, along with features like instant loans. Aave is 

 to multiple networks, with ARFCs passed for Linea, Celo, and World Liberty Finance, while Sonic, Mantle, BOB, and Rootstock are in earlier stages. GHO stablecoin is also growing, with expansions to Avalanche and Base already approved. Aave and GHO aim for widespread integration.

Check Out the Latest Prices, Charts, and Data of 

 the iShares Bitcoin ETF (IBIT) on Cboe Canada, offering Canadian investors access to Bitcoin through brokerage accounts. The ETF mirrors Bitcoin's price performance by investing in the U.S. iShares Bitcoin Trust ETF, which holds long-term Bitcoin assets. This launch highlights BlackRock’s focus on innovation and simplifying Bitcoin exposure by addressing operational and custody complexities. Cboe Canada, known for pioneering financial products, emphasizes its role in expanding the crypto ecosystem. IBIT and IBIT.U join seven other iShares ETFs on Cboe Canada, enabling investors to trade via standard investment channels.

Yesterday, BTC Spot ETFs experienced outflows totaling $313.6M, including $89M from GBTC and $224.6M from non-GBTC sources.

 its governance token, $ANIME, in January 2025 with a total supply of 10 billion (7.69 billion initially circulating). Community allocation is 50.5%, including 2% for Hyperliquid stakers, Kaito yappers, and Arbitrum users. Completing Azuki's points tasks might help with eligibility for the airdrop.

Beginner

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BlackRock Launches iShares Bitcoin ETF on Cboe Canada for Simplified Crypto Access

Holoworld is an AI-powered storytelling engine and comprehensive platform that democratizes the creation of interactive virtual characters. Learn more here.

The transformative potential of AI-powered characters remains largely untapped, constrained by technical barriers that limit widespread deployment. Holoworld emerges as a pioneering solution, offering an AI-powered storytelling engine that transforms the way we bring virtual characters to life.

This article examines Holoworld's revolutionary approach to digital character development and evaluates its potential impact on the future of AI-powered interactions. We'll examine its feature-rich ecosystem, analyze its development road map and evaluate its first AI agent token, AVA, as an investment opportunity.

 is an AI-powered storytelling engine and comprehensive platform that democratizes the creation of interactive virtual characters, enabling seamless development and deployment across digital platforms without coding knowledge.

Established in 2023 by Tong Pow and Hongzi Mao, Holoworld emerged from Hologram Labs, a San Francisco-based startup specializing in next-generation AI social technology. Built on years of technical expertise in motion capture, machine learning and 3D animation, the platform was conceived to democratize AI character creation and transform digital interaction.

The Holoworld project quickly attracted notable backing from investors, including Polychain Capital, Linkin Park's Mike Shinoda, BRC-20 token standard creator Domo, BitMEX co-founder Arthur Hayes and more.

Through collaborations with major brands like Arbitrum, BNB Chain, L'Oréal and Bilibili, as well as notable NFT projects such as 

, Hologram Labs has demonstrated its ability to create distinct digital identities through advanced AI technology.

Holoworld's primary mission is to democratize access to sophisticated AI character development by breaking down technical barriers that have previously limited creative expression. Through its intuitive platform, Holoworld empowers creators of all skill levels to transform their imaginative concepts into interactive digital personalities.

By making AI character creation accessible to everyone, regardless of technical expertise, Holoworld creates new possibilities for digital storytelling and interaction. The platform's seamless integration with popular social media and content platforms ensures these AI characters can reach and engage with audiences across multiple channels.

Beyond accessibility, Holoworld is building a sustainable ecosystem in which creators can monetize their virtual characters. This commitment to creator success is reinforced by the platform's community-driven approach, which ensures continual evolution based on user needs and feedback.

Holoworld operates through a sophisticated yet user-friendly interface that combines advanced AI technology with intuitive character-creation tools. It’s powered by cutting-edge technology, including OpenAI's GPT-3.5 Turbo model, with Ava AI’s (see below) deep learning neural network boasting over 175 billion machine learning parameters.

The character creation process consists of the following five main components.

The platform provides essential tools for defining character identity:

This phase involves bringing the character to life through carefully crafted behaviors and responses:

Characters can be equipped with information through 

The final step involves generating and customizing 3D avatars, giving characters their visual presence in the digital world. This completes the transformation from concept to fully realized digital personality.

Holoworld offers a comprehensive feature suite that empowers creators and brands to build and manage their AI characters. All of the components work seamlessly together to provide a complete AI-powered storytelling and interaction platform.

Ava AI represents Holoworld's flagship AI chatbot. Built on OpenAI's GPT-3.5 Turbo model, Ava AI features a sophisticated deep-learning neural network with over 175 billion machine-learning parameters. The system includes fast AI chat functionality, allowing users to ask anything and receive instant responses.

 represents Holoworld's flagship launchpad for on-chain 

. This innovative marketplace enables anyone to create and deploy multimodal AI agents, equipped with full-body avatars, customizable voices and upgradeable skills — all without coding knowledge.

The platform's reach extends across multiple social channels, particularly emphasizing X platform integration. What sets Agent Market apart is its deep integration with the upcoming Holoworld Launchpool, whereby AVA token holders can gain privileged access to new ecosystem projects.

The marketplace has already attracted an impressive array of partners and creators, from gaming studios and NFT communities to academic researchers from Stanford and Harvard, all preparing to use the platform to bring their unique AI agent visions to life.

The inventory system provides comprehensive management tools for users' digital assets. Users can efficiently organize their character assets, track resources and store customization items in one central location. This systematic approach ensures creators can access all their digital possessions within the platform.

Holoworld's chat system accommodates SFW and NSFW conversations with appropriate content filters. The platform manages token limits intelligently to ensure optimal performance while enabling real-time interactions. Users can engage in multi-character conversations, creating rich and dynamic interactions within the platform.

The playground environment serves as a crucial testing ground for character development. Users can experiment with different personality settings and interaction patterns before publication. This safe space allows creators to refine their characters' behaviors and responses, ensuring they meet desired specifications before going live.

Holoworld has established an ambitious development trajectory that focuses on expanding platform capabilities and enhancing user experience. Its road map encompasses several key areas as follows.

The platform aims to seamlessly integrate with X, Telegram and Discord for AI interactions, as well as TikTok, Twitch, YouTube Live and Instagram Reels for AI avatar livestreaming. These integrations will enable creators to reach broader audiences across multiple platforms.

Holoworld plans to lower barriers for content and IP creation through advanced character-generation capabilities, video-generation tools and a sophisticated animation engine. These improvements will make it easier for creators to produce high-quality content without needing extensive technical knowledge.

The platform is working to elevate user experience by implementing long-term memory for AI characters, enabling multi-agent interactions, developing a comprehensive simulation engine and enhancing voice creation features. These advancements will create more realistic and engaging character interactions.

To increase accessibility, Holoworld is focusing on mobile application optimization, browser extension creation, SDK evolution and desktop application enhancement. This multi-platform approach ensures users can access their AI characters from any device or platform.

Holoworld plans to empower creators through a comprehensive marketplace system that includes a skills marketplace, an asset marketplace and a creator leaderboard system. These features will provide creators with various opportunities to monetize their content and engage with their audiences.

AVA is the first AI agent token of the Holoworld ecosystem, launched based on its first AI agent, Ava AI. The token’s distribution is structured with a maximum supply of 1 billion AVA, with current metrics on Coingecko showing the following:

Looking to trade AVA tokens? Bybit now offers the AVAAIUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While Holoworld demonstrates innovative technology in the AI agent and virtual character space, investors must carefully consider its strengths and risk factors before making any investment decisions.

With its strong token utility, notable partnerships and innovative approach to democratizing AI agent creation, Holoworld shows promising potential. However, potential investors are advised to 

 and consider their risk tolerances before investing.

Holoworld represents a significant leap forward in democratizing AI character creation and interaction. With its comprehensive platform featuring Ava AI, robust development tools and a clear road map for future growth, Holoworld is positioning itself at the forefront of the AI-powered virtual character revolution.

Intermediate

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Holoworld (AVA): Bringing Imagination to Reality With AI

Kaia (KAIA) unites Klaytn & Finschia for Asia’s web3 growth. Backed by KakaoTalk & LINE, it offers scalability, low fees, & bridges Web 2.0 to web3.

 (TON) in 2024, largely attributable to its Telegram-based mini 

 (DApps), has put the spotlight on the use of 

 technologies in instant messaging platforms. However, the Telegram-linked project isn't the only one that has identified the potential in this area. As early as February 2024, two blockchain platforms with links to popular Asian messaging networks announced their high-profile merger. 

The merger of Klaytn (KLAY) — backed by the South Korean instant messaging platform KakaoTalk — and Finschia (FNSA) — operated by the owner of the Japan-based LINE messaging app — may have a far-reaching impact on the entire crypto industry. The merged entity, branded Kaia (KAIA), aims to become the leading web3 platform in Asia. With its deep links to Web 2.0 messaging giants, the Kaia blockchain could also challenge the dominance of TON in the niche of messenger-based mini DApps.

Kaia’s faith in its ambitious plans is well-founded. The KakaoTalk and LINE messenger apps boast a combined user audience of nearly 300 million across several Asian countries. With the vast number of easily accessible target users, Kaia is ideally positioned to become the main bridge between Web 2.0–based online messaging and web3. However, the multimillion army of potential users on KakaoTalk and LINE isn't the only trump card of the Kaia project: the blockchain features great scalability, near-instant finality, excellent throughput capacity and low transaction costs. 

With all of these benefits on offer and backing from some of the most prominent players in Asia's instant messaging sector, the Kaia chain might become the crypto industry's up-and-coming growth leader for the year 2025.

 (KAIA) is a Layer 1 blockchain that has emerged due to the merger of two web3 platforms — the Klaytn and Finschia blockchains. 

Klaytn and Finschia had operated as separate networks for several years, Klaytn since 2019 and Finschia since 2018, before their governance communities voted in February 2024 to approve the merger. The Kaia 

The merger immediately attracted the attention of industry observers, as it involved two platforms backed by Asian instant messaging giants — South Korea’s Kakao Corporation, the developer of Klaytn and KakaoTalk instant messenger, and Japanese LY Corporation (previously Line Corporation), the entity behind the LINE messenger app and the Finschia blockchain. As of early 2025, KakaoTalk boasts over 50 million active monthly users, mostly in South Korea, while the LINE messenger has around 230 million active monthly users spread across its key markets — Japan, Indonesia, Taiwan and Thailand.

The sheer size of the combined user audience of KakaoTalk and LINE, and their connection to the newly formed Kaia blockchain, suggest the project may become a leading platform by integrating web3 functionality into both messengers, similar to the way TON’s chain has become a champion of Telegram-based mini DApps. However, the goals of the merged project go well beyond the integration of Web 2.0 messaging and web3 functionality, and the Kaia project hopes to leverage its potential reach to become Asia’s leading blockchain platform.

 (EVM)–compatible blockchain that boasts outstanding technical properties, including one-second block generation times, a throughput capacity of 4,000 

 (TPS) and near-instant finality. It also offers low transaction fees (1/10th of Ethereum’s fees).

 of the original Klaytn blockchain. Following the merger, Klaytn's testnet, Baobab, has become Kaia’s testnet under the new name of Kairos.

Aiming to become the largest web3 environment in Asia, Kaia offers decentralized projects and developers opportunities across a wide variety of sectors, with a particular focus on three niches — 

Transition From Klaytn and Finschia to Kaia

The original Klaytn blockchain was launched in June 2019 by GroundX, a subsidiary of the South Korean technology giant Kakao Corporation. The key aim of Klaytn was to provide a low-

, high-throughput, developer-friendly platform for enterprise-grade applications. Klaytn was forked from Ethereum, and was highly EVM-compatible. It quickly grew popular in the South Korean market, propped up by support from the powerful Kakao Corporation.

Soon after its launch, the blockchain became the dominant web3 platform in South Korea. In 2021, the Bank of Korea selected Klaytn as the provider of choice for its 

 (CBDC) project. Kaia's great technical capabilities primarily derive from the original Klaytn network.

As for Finschia, the origins of this platform go back even further, to 2018, when Japan’s LINE Corporation — now known as LY Corporation, after a merger of several related business entities — developed and launched the LINK blockchain. In 2020, the platform was rebranded from LINK Chain to LINE Blockchain. This wasn't the last name change in its history, as the project’s penchant for rebranding proved unstoppable. Three years later, in April 2023, LINE was rebranded to Finschia.

The Finschia chain aimed to accommodate a wide variety of use cases, sporting an ambitious motto —

In January 2024, a proposal to merge Klaytn and Finschia was tendered for consideration by the platforms’ governance communities. One key aim of this proposed merger was to combine the potential reach of the two chains in Asia (estimated at around 250 million users for the two messenger apps at that time) in order to create the continent’s largest web3 environment.

The proposal was approved in February 2024 with overwhelming support, with 90% of Klaytn and 95% of Finschia governance representatives voting in favor of the merger.

In late August 2024, the Kaia mainnet launched, signifying the practical start of the ambitious project. As a fork of Klaytn, Kaia inherited its technical setup. This meant that DApps in the Klaytn ecosystem could seamlessly transition to the new network, with minimal modifications. Finschia DApps, on the other hand, need to be migrated to the new platform. Finschia Foundation, a nonprofit that supported the original Finschia project (and continues to provide support during the merger phase) can provide advice to DApps undertaking migration from the Finschia blockchain to Kaia.

The Kaia blockchain uses a specialized block validation process known as Practical Byzantine Fault Tolerance (PBFT). Distinct from 

 models employed in the industry, PBFT is a modification of the Istanbul BFT (IBFT) consensus algorithm, an innovative network consensus model designed to power secure block validation in distributed networks.

Kaia's PBFT algorithm randomly selects a committee of 

 to process and validate transaction blocks at one-second intervals. One validator node in the committee is assigned the proposer role. This node generates and proposes a transaction block for validation. The committee’s members need to sign the block to endorse its validity. In order for a block to be validated and written to Kaia's permanent ledger, more than two-thirds of the committee members must approve it. The committee isn't fixed, and a new one is formed from the pool of validator nodes for each block to be processed. Given Kaia's one-second block intervals, this committee selection process takes place every second.

Kaia's PBFT is designed to reliably process transaction blocks even when some proportion of validators on the network act maliciously. As such, PBFT is a highly fault-tolerant consensus model, a property it inherited from the original IBFT algorithm.

 (DLT) employs a three-layer architecture to power the network's operations. The underlying consensus layer is made up of consensus nodes (CNs), whose job is to process and approve blocks of transactions. These are the validator nodes we discussed above in the context of Kaia's PBFT consensus algorithm.

Above the consensus layer is the proxy layer, which is made up of core cells — mini networks consisting of one CN and two proxy nodes (PNs). PNs serve as an interface linking the underlying and outer layers of the blockchain. Within each core cell, a trio of one CN and two PNs work together to receive data from the outer layer and process transaction blocks.

This outer layer consists of endpoint nodes (ENs) that process data from service chains — app-specific Kaia chains that can be customized for the needs of each application or service.

The image below summarizes Kaia’s three-layer architecture, showing the three layers and the node types operating on each of them.

Kaia is an EVM-compatible chain capable of 

. The Kaia Virtual Machine (KVM) powers smart contracts and their processing on the network. KVM is derived from Ethereum’s virtual engine, the EVM, so blockchain developers can easily port Ethereum applications to Kaia with little modification. Common development technologies used in the Ethereum environment — such as the Solidity programming language, and the Hardhat development framework — are available to blockchain programmers building Kaia-based DApps.

The Kaia Governance Council, a group of reputable organizations in the blockchain industry, carries out the platform's governance. Council members consider proposals submitted by advisors and other stakeholders, analyze the proposed changes and vote to decide on them. While the Council currently drives the platform's governance process, Kaia aims to eventually fully decentralize its decision-making structure by introducing a community-based 

 (DAO). This will provide a more democratized and inclusive way for the wider user community to have a say in the network's strategic direction and rules.

Kaia uses an account-based model similar to the one employed by Ethereum, as opposed to the 

 (UTXO) model commonly associated with the Bitcoin (BTC) blockchain. However, the similarities between Ethereum’s and Kaia's account structures end here. 

One distinct feature of Kaia accounts is the ability for users to generate multiple key pairs. On most other blockchains, including Ethereum, an 

 can be associated with only one public-private key pair. This has several disadvantages, the most relevant of which is reduced security. By allowing multiple key pairs for account addresses, Kaia improves the overall security of account management for ordinary users and smart contract owners alike.

Each key pair generated for the address can be assigned a specific purpose or role. These role-based keys essentially mimic the functionality offered by 

, further enhancing account security and enabling more flexible access control modes.

There are two types of Kaia accounts: externally owned accounts (EOAs), which are used for cryptocurrency storage and transfers, and smart contract accounts (SCAs), which are capable of processing and storing smart contract code. While DApps leverage SCAs to power their functionality, most individual crypto users choose EOAs.

To make the management of EOAs easier and more user-friendly, the project team has developed a native wallet solution for the blockchain, Kaia Wallet, which operates as a browser extension. Available for Google Chrome, Kaia Wallet lets you manage your account via the familiar web-based interface.

The platform also offers a solution for multisig accounts, 

, which may better suit the needs of institutional users with sophisticated access control requirements.

A novel feature built into Kaia accounts is fee delegation, the ability for a user to send KAIA, the network's native token, without having to cover the transaction fee. Instead, the sender requests in the message that the fee is to be covered by the recipient party. The platform even supports partial fee delegation, whereby the sender can stipulate a specific proportion of the fee to be covered by the receiver.

The fee delegation feature may be used for multiple transaction types, involving both EOAs and SCAs.

KAIA is the Kaia platform's native cryptocurrency. It represents a rebrand of Klaytn's native token, KLAY. Following the Klaytn and Finschia merger, all KLAY tokens on the network were transferred automatically to the new KAIA tokens. For Finschia's FNSA token holders, the procedure to convert to KAIA is a bit more involved. They can utilize the Kaia Portal to 

 their FNSA tokens held on the Finschia chain, and then claim the equivalent amount of KAIA on the new blockchain.

KAIA is used to pay for smart contract operations on the network and 

 for transactions. It also has some staking functionality built in. Organizations admitted to the Kaia Governance Council need to stake at least 5 million KAIA to join.

The token is also used to pay block validation rewards. Earlier, we described a procedure involving node committees that process transaction blocks on the Kaia chain. For each generated block, 9.6 KAIA is split between the committee members involved in validating that block and two critical funds on the platform — the Kaia Ecosystem Fund (KEF) and the Kaia Infrastructure Fund (KIF). The validator committee members earn 50% of the block reward, while KEF and KIF receive 25% each.

KAIA’s total supply as of Jan 13, 2025 stands at nearly 5.9 billion. Since the token is continually issued for block rewards, its supply is subject to inflation and has no maximum cap.

 market as a swap pair with the USDT stablecoin, 

 market as a USDT-based perpetual futures contract.

As of Jan 13, 2025, the KAIA token is trading at $0.209, which is 48.9% lower than its ATH of $0.4067 on Dec 3, 2024, and 83.7% higher than its ATL of $0.1131 on Nov 4, 2024.

Long-term price forecasts for KAIA are generally bullish.DigitalCoinPrice 

 of $0.72 in 2027 and $1.12 in 2030, whileCoinCodex 

 at $ 0.2178 in 2027 and $ 0.68 in 2030.

The merger of Klaytn and Finschia has produced an enormously influential platform with potential access to nearly 300 million users of KakaoTalk and LINE. Moreover, this multimillion-strong potential audience isn't the only source of users that Kaia could tap into. Offering outstanding scalability, a highly secure consensus mechanism, low transaction costs and a unique account model capable of handling multiple key pairs per address, the Kaia blockchain is ripe for adoption by the enterprise world.

As of the start of 2025, the merged chain is still in the early months of its operation. While it might be a bit early to declare Kaia as the next big thing in the 

, the project is quickly shaping up as one of the best candidates for that designation, at least in the vast expanse of the Asian continent.

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Kaia (KAIA): Merging Klaytn & Finschia for Mass Web3 Adoption

SpaceS, the beloved Bybit Web3 Telegram game bot, just got a major upgrade with the launch of FarmX! Learn more about how to earn rewards with FarmX here.

the beloved Bybit Web3 Telegram game bot, just got a major upgrade with the launch of FarmX! This new decentralized farming platform creates opportunities for users to earn rewards by completing simple farming tasks and participating in various campaigns. With its easy-to-use setup and multiple reward pools, FarmX caters to both new and experienced crypto users, making it a fun and rewarding experience for all. This guide shows you what FarmX offers, how to get started and the best ways to maximize your returns.

 is a web3-enabled Telegram game bot that Bybit Web3 has developed. It blends entertainment with blockchain technology, offering players an interactive space-themed game in which they can earn points by dodging obstacles or flying automatically in farming mode. Beyond its gameplay, 

 introduces a social element, allowing players to invite friends and form fleets to play together.

FarmX is a decentralized platform on which users can easily earn rewards by participating in various farming activities. Simply connect your wallet, hold 

 or TON Points, and meet the activity conditions to start participating in reward pools. 

With multiple farming options available, FarmX caters to different investment preferences, making it suitable for both beginners and experienced users to explore and maximize their earning potential.

 on Telegram and tap on Start, followed by Launch Game.

: To access ongoing campaigns, tap on the 

: Browse the available campaigns to view the following:

 for participation and act quickly to secure your spot. Don’t miss out!

: Once you've selected a campaign, tap on 

: You will then be required to complete two simple tasks:

: When you join a campaign, you’ll automatically be participating in 

If you want to increase your earnings from the TON Pool, simply top up your TON deposit in your connected Bybit Wallet. 

The rewards you receive are determined by two key factors: the total amount of TON you’ve deposited, and the length of time your deposit remains active in the campaign. 

Simply put, the larger your deposit and the longer you participate, the greater your potential rewards. However, keep in mind that there’s a 

maximum deposit limit of 20 TON per account

, so plan your deposits strategically in order to maximize your returns.

Once you’ve completed the above steps, there’s nothing more you need to do — except wait for your rewards to be airdropped directly to your wallet. With multiple campaigns regularly updated, you’ll always have new opportunities to earn. 

 FarmX offers a unique and engaging way for users to explore 

 (DeFi) while earning rewards through gamified farming. It’s an accessible platform that caters to users with varying levels of experience, ensuring everyone has the chance to benefit. Dive in today, join your first campaign — and start farming your way to exciting rewards!

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Bybit SpaceS FarmX: How to Earn Rewards Through Farming

Crypto

Investing

Trading

Pump and dump schemes happen notoriously in the crypto industry, involving influencers who spread the news to inflate the price artificially. Learn how to avoid this fraudulent scheme to make the best investment choice!

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Bitcoin, the largest and most prominent cryptocurrency, consistently has over

 and has been featured on Fox, Bloomberg, 

. There are now at least 100,000 crypto millionaires among us. 

But just like the Wild West was, the world of crypto is a lawless place full of uncertainty and greed. Many would-be millionaires are taking advantage of insufficient regulation to employ tactics that are illegal in other markets. One such scheme currently flying under the regulation radar is the pump and dump.

The idea behind a pump and dump scheme is simple: A group of bad actors deliberately buys an asset, often small-cap stocks or other thinly traded securities, sings its praises to anyone who will listen — using false news or information (pump) — then sells when the increased activity drives up the stock price (dump). This often leaves those who bought the hype holding the bag, as asset prices crumble and artificial demand dries up.

Once done over the phone in boiler rooms, as in the movie 

 pump and dump schemes now have the internet and robo traders fueling these schemes. The underlying strategy is still the same: Buy a low-volume asset, pump up its potential returns to investors on message boards, group chats and social networks, promise huge returns, and then dump the position when the buying starts and the price spikes. 

The main difference today is that the timing between getting in at the bottom and holding the bag at the end can be less than five minutes. It’s rarely more than a day or two. The below graph shows what happened to Mimosa (MIMO) earlier this month.

As you can see from the example above, on Sunday, Jul 11, the pump started. Bad actors in the pump group took to message boards with false information to drive up the price. With volume increasing 10x over the previous week, this frenzy pushed up the price, normally around $0.20, to a high of around $0.87. However, the 340% increase evaporated almost as quickly as it had arrived. 

By Tuesday morning, the price was back to $0.20, and over $750,000 had changed hands. The only investors left with a profit were those who had sold during the hype, with many accounts deep in the red, holding a coin with no real value. Low trading volumes mark the end of the dump scheme.

The pump and dump scheme is just old wine in new wineskins: it’s been around for ages. The scheme’s strength lies in its simplicity. 

 pump and dump is finding the asset. It needs to be something with low volume: Because the crypto asset is thinly traded, it’s more likely to react favorably when volumes increase. Market manipulation is more likely to work on these types of coins than those with high or average trading volumes. It’s also often a coin that has recently been issued through an 

 (ICO), since it’s easier to create a positive spin on an unknown asset than one with years of historical data. Many investors are looking for the next big digital coin, so picking a new “up-and-comer” makes the scheme easier to pull off. 

Bad actors, especially those on Discord’s internet platform, often try to find coins without a 

 so there’s no downward pressure on the pump target. Ideally, the schemers are able to pick an asset with a relatively stable price, so that in the event the manipulation scheme doesn’t work, the asset can be off-loaded without a potential loss from volatility.

Once the target has been identified, bad actors begin slowly buying up available coins. The goal is to amass a large position slowly, so as not to spike the volume or tip off others. This can be done over days or weeks in order to keep the price stable.

Now comes the pump. Due to the history of pump and dump schemes, and the ability of investors to research claims quickly, new tactics are being employed. Current scammers go on Discord, Telegram and/or other chat groups to suggest that groups participate in a pump and dump. 

For example, groups like Voyager Pump or Galactic Pump will promote coins on Discord for their members to pump and dump. They pitch that they’ll receive the coin to pump from an algorithm or bot so that nobody can get in early. They often also sell VIP access, where those paying for the information get the target 5 to 10 minutes before the rest of the members of the group. In reality, 

 This just manipulatively creates the perception of a “fair” scheme to participants. 

When the group now purchases the coin in what they believe is a pre-pump market, the perpetrators of the scam off-load their holdings. The Discord accounts will count down to the dump, creating a time limit and FOMO (fear of missing out) for investors. 

Encouraged by deliberate misinformation and rising prices, many more traders jump in, causing the price to rise even faster. The excitement and hopes of further gains reach a crescendo, and the group’s members flood the market, trying to get some coins before (they believe) the information is to be released to the general public. 

With the asset now at a much higher price, the conspirators behind the initial buying and publicity start to off-load their holdings, making substantial gains in the process.

By the time the information has reached Twitter or Reddit, the scheme has already taken place, and the rest — hoping to profit from the illicit scheme — are instead left holding the bag. The poor folks who joined the party rather late are stuck with now worthless assets and no buyer in sight. The scheme ends here — and the group moves on to the next one.

This is how a standard pump and dump scheme works. Of course, the process can take many forms, and there are nuances, but the principles are the same.

Below is an example of how Rocket pump was able to use its members to increase volume. Notice how the spike occurs within 5 minutes of the announcement, and then dramatically rises prior to the announcement, probably from “VIP” members paying for early information.

Now, it’s hard to feel bad for someone who gets scammed while trying to scam others, but sometimes the victims are innocent bystanders, unknowingly trying to find the next big thing. There are also instances in which investors utilize their stature to pump coins. In one example, the late John McAfee allegedly 

Starting in December 2017, he promoted a series known as “Coin of the Day.” These coins were obscure, often low volume, and each saw a substantial spike after his endorsement. Take, for instance, 

 (ETN, shown below). On Dec 21, 2017, just minutes after his tweets praised the coin, the market cap for the obscure new asset doubled. Investors piled on to get a piece of “the holy grail of cryptocurrency,” as McAfee described it.

With Electroneum and other assets, McAfee was either holding the coins without disclosing his interest or being paid by coin issuers to promote their ICOs. In March of this year, a few months before his passing, McAfee

 for his role in the scheme. This was a statement move by regulators in an area that has been thinly prosecuted.

Now that we know what a pump and dump scheme is, and how it’s orchestrated, how do we recognize when a coin is just popular and trending — or actually the vehicle for a scheme?

How to Spot a Crypto Pump and Dump Scheme

The easiest way to spot a pump and dump is to start by understanding its mechanics. If the value of a relatively unknown coin rises suddenly without reason, there’s a good chance manipulation is at play. It’s always best to do some digging before making a purchase. Avoid rushing into a project before you’ve researched it. 

If you wait a little bit to invest, you may lose out on some return, but having greater confidence in your investment will give you assurance in the long run. In the case of a pump and dump, the extra time might even save you from holding a wallet full of worthless coins. 

At the end of the day, here are the five main symptoms to look for.

A prime feature of pumps and dumps is their sharp price movement. While 

 can happen with any coin, during a pump and dump, coordinated action among a party of schemers is occurring. A coin’s value starts rising quickly for no discernible reason, and then later falls just as rapidly with no obvious explanation.

Looking at a coin’s price chart can tell you a lot about its volume changes and price history. There are also online trackers who will alert you to potential pump and dump schemes. For instance, 

 tracks any rise of over 5% within a 5-minute period to alert users to potential scams.

Pump and dumps are often coordinated schemes masterminded in online chat groups. Known pump-and-dump groups can be followed, though some may charge for timely information. The number of people in one of these groups can be as high as 200,000, though smaller groups can comprise about 2,000 individuals. Relatively anonymous and private channels on Discord and Telegram are often used to coordinate such schemes.

Vetting the source of your digital coin’s info is key to spotting rogue tips. If you see known perpetrators shilling the coin, or many posts from unscrupulous sources related to a less popular or risky coin, there’s reason to be wary. If a low-market-cap coin suddenly starts trending on Twitter or popping up on Facebook ads, and then you get an unsolicited investment offer, you might also want to exercise caution.

Groups that offer crypto trading signals may just be perpetrating pump and dump schemes. They’re trying to appeal to beginners who may have limited trading experience. After gaining their trust, they may charge fees for trading signals, but it’s impossible to know where those signals come from and whether they originate from manipulators. 

Influencers come in all shapes and sizes. If a random influencer with a questionable background and no cryptocurrency experience suddenly starts promoting a coin, be skeptical. Many promoters may also promise guaranteed returns. Be wary of any promises of free money and returns. If it sounds too good to be true, it usually is.

Thin trading volume usually means thin liquidity and order books that aren’t full of buyers and sellers to stabilize pricing. Market makers may not have much interest in a particular name to keep creating buy and sell orders. As a result, it’s easy for the price to spike well past typical levels, especially in a short period of time. Any asset with thin order books is more prone to price and trading manipulation.

 of a coin is calculated using its price multiplied by the supply. Pump and dump groups target low-market-cap coins more frequently because coins with smaller supplies also often exhibit less trading activity. These smaller coins are subject to price manipulation by groups of bad actors. Although what’s considered as a small market cap is subjective, coins below $1m in market cap are likely to fall into this category.

Exchanges that are less regulated are often more vulnerable to pump and dump schemes. Analysis has found that pump and dump schemes are relatively more frequent on exchanges Binance and Bittrex, compared to heavily regulated U.S.-based exchanges. Often, the price and volume spikes occur on a single exchange, rather than several exchanges.

If you encounter any of the above symptoms, it’s likely you’re witnessing a pump and dump.

Pump and Dump vs. Rug Pull: The Differences

As with any financial scams, cryptocurrency scammers and fraudsters try to use illegal and/or unethical ways to trick others into handing over their hard-earned money. One common scam to look out for is people offering a service or product — but only accepting crypto as payment. Because crypto is hard to trace, and can’t be refunded without the recipient’s permission, it’s the perfect currency to receive as a scammer. 

Another red flag is any website or communication that promises guaranteed returns. Returns are 

Crypto Pump and Dump Schemes: What to Do When They Happen

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