Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
The emergence of cryptocurrency has led to several risks and challenges, one of which is the rise of fraudulent activities like pump and dump schemes. These schemes involve manipulating the price of a security such as cryptocurrency using false or deceptive information. Telegram channels have become a popular platform for carrying out such schemes. The aim of this research is to examine the effect of pump and dump events on the trading volume and price volatility of three major cryptocurrencies – Bitcoin, Ethereum, and Ripple. Through regression analysis and historical data, the research found that pump attempts had a considerable impact on the Bitcoin, Ethereum, and Ripple markets, particularly in terms of trading volume and price volatility. During bullish periods, there were notable variations in mean volume and volatility between pump-related and non-pump-related transactions for Ethereum and Bitcoin. The study further indicated that market capitalization is a crucial indicator for predicting trading volume and trading volatility for Ethereum and Bitcoin. These findings are significant for regulators and market participants, as they aid in further understanding the wider consequences of fraudulent activities in the cryptocurrency market.
Gao, Ruilu, "The Impact of Pump and Dump Schemes on Major Cryptocurrencies: An Analysis of Price Volatility and Trading Volume" (2023). CMC Senior Theses. 3354.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.