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arXiv:2005.06610cs.CY

Pump and Dumps in the Bitcoin Era: Real Time Detection of Cryptocurrency Market Manipulations

Massimo La Morgia, Alessandro Mei, Francesco Sassi, Julinda Stefa

Abstract

In the last years, cryptocurrencies are increasingly popular. Even people who are not experts have started to invest in these securities and nowadays cryptocurrency exchanges process transactions for over 100 billion US dollars per month. However, many cryptocurrencies have low liquidity and therefore they are highly prone to market manipulation schemes. In this paper, we perform an in-depth analysis of pump and dump schemes organized by communities over the Internet. We observe how these communities are organized and how they carry out the fraud. Then, we report on two case studies related to pump and dump groups. Lastly, we introduce an approach to detect the fraud in real time that outperforms the current state of the art, so to help investors stay out of the market when a pump and dump scheme is in action.

arXiv comments
Accepted for publication at The 29th International Conference on Computer Communications and Networks (ICCCN 2020)
Journal reference
DOI
doi:10.1109/ICCCN49398.2020.9209660
Subjects
cs.CYComputers and Society cs.CRCryptography and Security cs.LGMachine Learning q-fin.STStatistical Finance

On Hacker News

Linked by 2 identifiable commenters in 3 comments across 2 threads, from Jan 2021 to Jan 2021. Found in 2 HN submissions from Jan 2021 to Jan 2021. Open submission discussions.

Comments linking this paper, per year.

Discussed in comments2 threads

  1. Ask HN: What are you working on? 1 comment

    • I'm making a job board for local businesses to post listings as well as for people to find jobs working for small businesses. It's mainly for a portfolio piece, but I'm having fun making it. I'm also going through and implementing this paper https://arxiv.org/pdf/2005.06610.pdf

      willmeyersView on HNParent context

  2. To the moon: defining and detecting cryptocurrency pump-and-dumps (2018) 2 comments

    • If people are interested in the topic, a more recent paper from 2020 is "Pump and Dumps in the Bitcoin Era: Real Time Detection of Cryptocurrency Market Manipulations", available at https://arxiv.org/pdf/2005.06610.pdf. The researchers got some very good results (their detection…

      dgellowView on HNParent context

    • For a better approach, you can check this paper from 2020: https://arxiv.org/pdf/2005.06610.pdf. Quote from the paper: > Not only our performances are considerably better than theirs, we score 93.1% of precision and 91.4% recall against their 50.1% precision and 75.0% recall…

      dgellowView on HNParent context

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