No slump for pump and dump cryptocurrency gangs
In a sleepy corner of the crypto-economy, the value of an obscure coin called Enzyme was tumbling downwards along with its peers earlier this month -- but then something unusual happened on May 15.
Enzyme, also known as MLN, rocketed from 30 cents to 47 cents in just minutes and daily trading volumes exploded from around $3 million to more than $100 million, according to CoinGecko.
A few hours later, it crashed back down to 35 cents.
The coin had just been "pumped and dumped", an age-old scam when traders get together and orchestrate a price hike to bag a quick profit.
"In the stock market, pump and dump is illegal, which is why criminals take advantage of the less robust regulatory framework around crypto assets," said Mircea Mihaescu of compliance outfit Coinfirm.
The scamming industry -- worth some $7.8 billion last year according to Chainalysis data -- has not given up though.
Scammers continue to find fertile ground on the Telegram app and Twitter, positioning themselves as benevolent heroes helping those who have lost out in the crash.
The rationale preys on the cult-like nature of crypto investing, but experts say it is far from the truth.
The May 15 call to arms came on a Telegram group called WallStreetBets - Pumps.
After several messages building the hype, the group wrote: "The coin we are buying is $MLN... Shill it on Twitter to make it trending."
Twitter immediately lit up.
"Whales accumulating, worth a shot!" tweeted a user called CryptoSanta, referring to the nickname of mega-rich investors.
Enzyme Finance, the firm that owns the MLN coin but has no link to the Telegram channel, quickly tried to calm things down.
"Please be careful of fake accounts looking to operate pump and dump schemes," the firm tweeted, distancing
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