The crypto market has yet again seen the signs of a pump and dump.
Not that they have been completely eradicated from the market since the 2017 bull market but in the past few years as the market corrected and then consolidated, the blatant pump and dumps took a rest.
There have been cases of traders on Twitter dumping the coins on their followers, but last week, saw the infamous pump and dump caused by the listing on prominent exchanges.
The US-based Coinbase has been notorious for giving the prices of crypto a pump in anticipation of their listing on its platform.
Nearly each new recent Coinbase listing has a better inital return than the preceding one. pic.twitter.com/uOFRnoa127
— Matt Casto (@mcasto_) May 22, 2020
Coinbase Effect is Back
With the announcement of OmiseGo (OMG) listing, the market experienced the comeback of pump and dump schemes.
On May 21, Coinbase announced that it is launching OMG on its platform and Android and iOS apps.
“OMG continues to predictably rise as the Coinbase Pro listing effect continues to draw in new investors,” said Santiment.
Coinbase’s announcement led to a large rise in its daily active addresses and skyrocketing of social volume which brought in “a tremendous amount of FOMO.”
OMG prices started surging on May 19, when it was trading at $0.96 to $1.19 on May 20th. Then on May 21, OMG went parabolic, going to over $2.15 from $1.11 the previous day, jumping 93%.
The first day of OMG trading, analyst Matt Casto found a “ridiculous” amount of premium 82.34% on the prices of OMG on Coinbase and Binance.
“If you bought 1 BTC worth of OmiseGO in May 2018 it would have been worth about 0.04 BTC last week. If you bought 1 BTC worth of OmiseGO last week it would be worth about 1.6 BTC now,” said Francis Pouliot.
The price of the OmiseGo shitcoin increased against Bitcoin by 40% two days before being listed on Coinbase. It had just hit all-time low after losing 99% of its value since May 2018.
They don't even care about trying to hide the scams. pic.twitter.com/12aitVHYWB
— Frλ͎ncis ☣️ (bullbitcoin.com) (@francispouliot_) May 21, 2020
Currently trading at $1.66, OMG prices are heavily down 94% from its all-time high hit in 2017 bull rally.
Interestingly, Coinbase was accused of insider trading back in 2017 when it listed BCH. Just after minutes of trading, the exchange suspended its operations. A class-action lawsuit was also filed and the judge ruled the “incompetence born of haste.”
AVA made a New ATH on Binance Merger
Another token to pump last week was Travala (AVA) which soared to its all-time high at $0.492 on May 20th, the day Binance announced the merger with the travel booking service provider.
AVA prices started surging a week before that. Around that time, on May 13th AVA deposits and trading went live on Poloniex, a crypto exchange acquired by Tron founder and CEO Justin Sun.