How crypto futures markets are feeding ‘scam coin’ insider pump and dumps
CryptoSlate
Cryptocurrency exchanges enabling perpetual futures for tokens with low liquidity and concentrated supply are fueling manipulative, high-stakes pump and dump schemes.Summary
The article examines how "scam coins" such as RAVE, SIREN, and ARIA utilize thin-float spot liquidity and perpetual futures markets to execute pump and dump schemes. By listing tokens with highly concentrated supply, exchanges create environments where insiders can manipulate prices, trigger forced liquidations, and trap retail short-sellers. While major exchanges have published guidance to identify such risks, the incentive to collect high fees from derivatives volume often leads to the continued listing of these volatile, manipulation-prone assets.
(Source：CryptoSlate)