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 is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
More articlesDamir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
