Anti-dump/anti-dumping Policy


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Anti-dump/anti-dumping Policy

What is Anti-dump/anti-dumping Policy?

An Anti-Dump/Anti-Dumping Policy is a collection of rules designed to protect investors from pump and dump schemes. Dumping is a phrase used to describe an event in which a large investor, often known as a whale, purchases a large number of tokens with the purpose of significantly boosting the price before selling them all for a high profit.

Understanding Anti-dump/anti-dumping Policy

A type of scam known as the pump-and-dump strategy exists. It occurs when fraudsters dupe unsuspecting investors into purchasing an asset based on misleading information. As a result, the anti-dumping regulation protects investors from falling victim to the fraud.

To be more explicit, dumping occurs when a whale (a person who owns a huge number of specific cryptocurrencies) purchases a large number of tokens with the intention of driving up the price and profiting by selling everything at once.

The Squid Game token, which was invented after the show, is a perfect example of this. It increased by 14,300% in one week and then fell to zero in a matter of seconds. To put things into perspective, the developers had a nefarious plan in mind: once you buy the token, you can’t sell it because of the anti-dumping provision.

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Damir Yalalov

Damir is the Editor/SEO/Product Lead at mpost.io. He is most interested in SecureTech, Blockchain, and FinTech startups. Damir earned a bachelor's degree in physics.

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