YoBit Announces 10 BTC Pump On 10 Random Coins In Questionable Marketing Scheme

The crypto exchange YoBit has gone berserk, flying straight into the eye of the storm by announcing that it will pump 10 random coins with one Bitcoin for a total of 10 Bitcoin.

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The crypto exchange YoBit has gone berserk, flying straight into the eye of the storm by announcing that it will pump 10 random coins with one Bitcoin for a total of 10 Bitcoin.

In a tweet and on its website, the Russia-based digital asset platform makes it clear that it is going to attempt at manipulating prices of random coins, starting October 11.

The exchange has said that it will purchase one random coin for the value of one Bitcoin (BTC) every one or two minutes ten times. It says it will spend 10 BTC on what appears to be very questionable marketing and irresponsible behavior.

The first take for most people in the crypto community was that Yobit’s Twitter account might have been hacked, not an entirely new thing in the digital currency space. However, the exchange has the same message openly displayed on its website, complete with a countdown timer.

What was the Yobit marketing team thinking?

The crypto community is in shock over this matter, with most telling off the team who are promoting this fraudulent activity.

A user @iamjosephyoung said:

“YoBit is making Coincheck look good. I’d rather have my funds lost in a $500 million hack than see this. The team at Yobit should be ashamed; this is as low as an exchange could go. I’m lost for words; it’s absolutely disgusting and horrendous.”

Another comment on Twitter draws the attention of the retail users, stating that its small-time traders who will suffer since the coin selected for pumping may be known to insiders.

In addition to hurting the retail trader, the move by the exchange automatically draws in regulators. In short, retail users should keep off the exchange.

Founded in 2015, Yobit’s past hasn’t been without incident. The exchange has hit the headlines on numerous occasions, with accusations against it ranging from engaging in fraudulent activities to allowing price manipulation.

It has also had troubles with its users’ funds, something that led Russian authorities the block access in February 2017. In November of that year, reports emerged that the exchange was allowing traders to inflate prices via popular messaging app Telegram.

The U.S Commodities Trading Futures Commission (CFTC) has in the past asked the public to be careful of pump and dump schemes and has said it will pursue and prosecute perpetrators of such activities. However, for the Russia-based exchange, the CFTC’s investigations may have no impact.

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