Bitcoin prices are driven by rumors

Fraudsters try to manipulate the Bitcoin price with fake news

Security researchers are warning of a wave of false positives with which fraudsters want to manipulate the price of cryptocurrencies like Bitcoin in their favor. In the past few months, a number of rumors have spread across Reddit, 4Chan, and Messenger like Telegram.

For example, it was alleged that Ethereum inventor Vitalik Buterin was killed in a car accident. This led to a decline in the price of ETH, the Etherum cryptocurrency. The course only stabilized after Buterin posted a selfie to dispel the rumors.

Price manipulation

Other fake news concerned Amazon, for example: The largest online retailer should "soon" accept Bitcoin. That would of course increase its value, which is why some users invested in Bitcoin. Even the German newspaper "Die Welt" reported on it. Bitcoin owners were able to get rid of them at increased prices until Amazon's denial.

Pump and dump

"People who are interested in cryptocurrencies have to think soberly," says blockchain expert Laz Alberto to Buzzfeed, which has reported extensively on the scams. New cryptocurrencies are particularly affected by fake news. So-called "pump and dump" actions are carried out via Telegram and other messengers. This triggers a price increase - for example through fake tweets or messages, after which fraudsters then sell their shares.

"Obviously Illegal"

The price of the cryptocurrency GVT was driven up from $ 30 to $ 45 within a few hours by a fake tweet from IT guru John McAfee. McAfee allegedly advised investing in GVT. During the high phase of the cryptocurrency, fraudsters then sold their shares, the price finally fell back to $ 30. "This is obviously illegal, but it is not regulated and the scammers get away with it," says Alberto. (red, January 22, 2018)