Binance Pump and Dump
Pump-and-dump schemes have plagued the financial world since the 17th century, it involves spreading false information and therefore fraudulently manipulating prices.
The offenders gather a commodity (in this case, cryptocurrencies) over a period, they then spread misinformation (pumping), they then sell off to the unsuspecting buyer at an inflated price (dumping).
The problem arises as the prices will automatically drop since they were artificially inflated leaving the buyer who bought at a false strength counting losses. In the new age of cryptocurrencies, the time scale has shortened and its scope has broadened thus intensifying the problem, it is even worse for the cryptos as there is currently insufficient scientific data making it harder for regulators to provide regulations for protecting users. This leaves crypto currencies exposed to this kind of market manipulation.
You can detect Binance pump and dump scheme by checking the following; price anomaly- if the high price at any point does not match with the computed threshold for that point then the point is said to be anomalous and should be a cause for concern.
Volume anomaly – Volume anomaly works the same way with price anomaly above. Market cap is low – market cap is a one way of assessing the size, or popularity of a cryptocurrency.