A prominent cryptocurrency influencer has come under fire after hosting a livestream that appeared to encourage pump-and-dump schemes, a controversial practice of artificially inflating an asset’s value before selling off holdings at a profit. The Nov. 20 broadcast, widely criticized on social media, featured discussions about coordinated buying of low-market-cap tokens with promises of quick gains. Many viewers and industry experts condemned the content for promoting unethical and potentially illegal trading behavior.
The livestream gained significant attention as the influencer’s audience, numbering in the hundreds of thousands, participated in the promoted trades. While some users reported short-term profits, others experienced losses as token prices crashed almost immediately after the pump. Critics accused the influencer of exploiting inexperienced traders and warned of the long-term damage such schemes could inflict on the cryptocurrency market’s credibility.
Regulators and watchdog groups have increasingly scrutinized such activities, viewing pump-and-dump schemes as market manipulation. Legal experts have noted that influencers engaging in these practices risk regulatory action, including fines and bans from participating in financial markets. Platforms like YouTube and Twitch, where such content is often broadcast, also face growing pressure to crack down on creators promoting unethical trading practices.
The incident has reignited debates about the role of social media influencers in the cryptocurrency space and the need for greater transparency and accountability. While many influencers serve as valuable sources of education and market insights, cases like this highlight the darker side of their influence. Industry advocates are calling for stronger community standards and clearer regulatory frameworks to protect retail investors from similar exploitative practices.
