Technologies

Cryptocurrency pump-and-dump schemes: Everything you should know about these scams

Don’t be the victim of a rug pull.

Cryptocurrency fans view Bitcoin, Ethereum and Dogecoin as the future of money for the globe. The underlying blockchain technology allows crypto to work by creating a digital ledger that records transactions, which would seemingly create a safer form of currency. But where there’s money to be made, scammers aren’t far behind.

Crypto pump-and-dump schemes are designed to take advantage of people while making some big money for scammers. They generally involve influencers who receive financial incentives for telling people to buy a certain digital coin in order to raise its value. Once the value goes up, the scammers and influencers sell their coins and pocket the profits, while everyone else sees their investments lose value.

These schemes mark the latest twist in the ever-changing story of cryptocurrencies, which have created some millionaires while bankrupting others through their persistent volatility. Even Dogecoin, a cryptocurrency created as a joke, garnered mainstream attention thanks to high-profile figures such as Tesla CEO Elon Musk, who said at last week’s B conference that he «pumps, but doesn’t dump.»

He’s not the only one.

Earlier this month, popular esports organization FaZe Clan suspended multiple members who participated in a crypto pump-and-dump disguised as a charity drive while taking home tens of thousands of dollars.

With cryptocurrencies becoming easier to develop, scammers are taking advantage of people who have developed FOMO, or «fear of missing out,» and are looking to jump on new crypto coins in hopes of getting rich.

Here’s what you need to know about crypto pump-and-dumps.

What is a pump-and-dump scam?

A pump and dump is a securities scam usually involving stocks. Scammers create false hype about a stock in order to generate interest. Once investors start buying shares, the price of the stock goes up. When the price reaches a certain point, the scammers behind the fake hype sell all of their shares. This causes the stock price to plummet, which leaves new investors holding the bag.

The movie The Wolf of Wall Street portrayed the infamous pump-and-dump scam conducted by Stratton Oakmont investment firm in the ’90s.

How does this scam work with cryptocurrency?

It doesn’t work much differently than with stocks. A certain crypto asset is pumped up by people in order to make the value increase.

«As the prices rise, the pump creators dump their assets into the FOMO they’ve generated, resulting in a price crash that leaves the new buyers holding a bag of the assets that now have a lower value than they were purchased at, creating significant and often unrecoverable losses,» said Douglas Horn, chief architect of Telos Core Developers.

What’s different is what’s used for the pump-and-dump. Bitcoin, Etherereum and Dogecoin are well-established cryptocurrencies, and it takes someone with the following of Musk to increase or decrease their value. However, since creating a whole blockchain system for a currency takes a lot of time and effort, those knowledgeable about coding can create their own crypto tokens, which are digital assets using an already existing blockchain like Bitcoin or Ethereum.

These tokens, also referred to as coins, can be created easily like Shiba Inu, which the developers have referred to as a «Dogecoin killer» in a tongue-in-cheek manner. Developers can also create billions of these coins, which in turn means they go for fractions of a penny. One Shiba Inu token, for example, costs $0.0000065, so you can buy 100,000 tokens for less than $1.

Since someone can create billions of tokens easily that cost hardly anything, all that’s needed is to convince enough people to buy these super cheap coins. This can be done through Discord channels, forums or social media, or by getting an influencer to promote the coin in exchange for their own trove of coins.

If the scammers have 1 billion tokens worth $0.000001 then that’s only worth $1,000. But if they can increase the value of a token by just one decimal point, their stash of coins is now worth $10,000. If they dump it quickly, that’ll cause its value to crash.

Another small difference with the crypto pump-and-dump is the term. While it’s known as a pump-and-dump, in crypto circles the scam is referred to as a «rug pull,» as in the rug was pulled right out from under the investors. Part of enticing people to buy these super cheap tokens is to say they’re «rug-proof,» which means there are measures in place to prevent people who have a large number of coins from selling them within a certain time period.

What are some examples of cryptocurrency pump-and-dumps?

In July, four members of the FaZe Clan participated in a pump-and-dump for a token called SaveTheChildren. The pro gamers, along with other influencers, pushed the coin to their followers. Once the price increased, they began selling off the tokens they were given to be part of the scam, with some making an estimated $30,000.

window.CnetFunctions.logWithLabel(‘%c One Trust ‘, «Service loaded: script_twitterwidget with class optanon-category-5»);

Another coin called SafeTrade was sold as «rug-proof» earlier this year. Once people started buying, the organizers sold their coins and left everyone else in the dust.

A 2020 study from the University of Technology Sydney and the Stockholm School of Economics in Riga found 355 instances of crypto pump-and-dump scams over the course of seven months. The organizers of these scams made millions.

Are pump-and-dump scams illegal?

For stocks, yes. For cryptocurrency, no.

The Securities and Exchange Commission is the government regulatory agency that investigates securities scams such as insider trading and pump and dumps. It doesn’t yet have similar rules for cryptocurrency, and doesn’t plan on implementing crypto regulations, at least for 2021.

How do you avoid crypto pump-and-dumps?

It’s important to understand if FOMO is contributing to your decision on whether to invest in a cryptocurrency. It may seem like everyone is getting rich off of Bitcoin or Dogecoin, but that’s not the case.

The next is to do your homework. Crypto coins or tokens can be created fairly easily by people who understand coding. If there’s a new coin that’s supposedly going to make you rich, do some web searches to learn more. The initial coin offering, or ICO, will have a «white paper» that offers details about the coin, who’s behind it, what their objective is and so on.

Then there’s a matter of the buzz that’s being generated. A way scammers get the word out about their coin is going into spaces where people are interested in cryptocurrency, such as Discord channels, social media and forums. If all of a sudden some person starts hyping up a brand new token, there’s a good chance they’re pushing a scam.

Be wary of any influencer who you may follow who hardly mentions cryptocurrency and randomly begins promoting a token. In the case of the FaZe Clan members, they promoted coins with a social media campaign and gave out thousands of free coins to their followers, which in turn entices other followers to buy coins — FOMO strikes again. If you’re going to take financial advice, get it from a professional and not someone whose claim to fame is being good at a video game.

Last, if you’re still interested in investing, then don’t invest more than you’re willing to lose. It’s possible that with the right timing, an investor could make money off a pump-and-dump, but it’s better to assume that the money you’re using to buy tokens will be gone forever.

Technologies

A Humanoid Robot Visits the White House to Push AI for Teaching Kids

First lady Melania Trump shares the spotlight with a Figure 03 robot to promote the use of artificial intelligence in education.

An unexpected guest escorted Melania Trump at the Fostering the Future Together Global Coalition Summit on Wednesday: a walking, talking Figure 03 humanoid robot.

During the event, the first lady pitched a future where AI-powered humanoid robots — presented as an idealized educator named «Plato» — provide students with personalized and instant access to human knowledge, including philosophy and art.

The Figure 03 robot is made by Silicon Valley-based robotics company Figure AI, which introduced its third-generation humanoid robot in October last year. The Figure 03 robot costs around $25,000, according to Forbes.

Figure 03 was designed for people to use in their homes, with demo videos showing it folding laundry, lifting eggs from a carton, using a washing machine and delivering drinks to its owners lounging by the pool. It was also shown in corporate use cases as a receptionist and a package deliverer. Using a proprietary AI engine called Helix, it can autonomously perform these tasks and respond to your voice commands.

At the White House, the humanoid robot walked slowly down the red carpet to deliver opening remarks for the tech summit.

«I’m grateful to be part of this historic movement to empower children with technology and education,» the Figure 03 robot said. It then said «welcome» in various languages.

The first lady later said that AI-powered humanoid robots could be placed in children’s homes as an aid to their education to «boost analytic skills and problem solving and adapt in real time to a student’s pace, prior knowledge and even emotional state.»

Promoting AI in education

The two-day summit is hosting leaders from 45 nations and 28 technology organizations, and is intended to «empower children through education and technology,» according to a White House statement. Guests included representatives from tech giants such as Google, OpenAI, and Microsoft and the AI data analytics company Palantir.

The summit is part of the first lady’s Be Best: Fostering the Future initiative, which aims to help children learn using advanced technology. It was introduced in 2018 as an awareness campaign aimed at combating cyberbullying and helping children affected by the opioid crisis.

US Education Secretary Linda McMahon spoke about AI being one of the Department of Education’s main priorities on the first day of the summit.

«If we’re able to scale these resources effectively by investing in AI infrastructure and training, we can offer expert instructions across countless fields, to hire volumes of people at a fraction of the cost,» McMahon said Tuesday at a roundtable meeting.

According to McMahon, the Department of Education has already dedicated millions of dollars in grants to support the use of AI in schools.

The event follows criticism of the Trump administration’s 2025 executive order to dismantle the Department of Education. While the Department of Education hasn’t been officially abolished, it has undergone significant policy changes, funding cuts and workforce reductions.

The introduction of a humanoid robot at the summit sparked significant backlash among many who are wary of the technology’s role in the classroom. Critics took to social media to voice concerns that these machines could eventually replace teachers, stripping the education system of essential human connection, and leading to increased layoffs and cost-cutting.

On one Huffington Post Instagram post featuring the robot, commenters expressed deep skepticism, with one user sarcastically noting, «Nice, getting rid of educators in favor of a robot,» while another flatly rejected the concept, stating, «No, I don’t want to imagine a world with emotionless robots educating our children.»

The White House did not immediately respond to a request for comment.

Technologies

Nintendo’s $20 Switch 2 Upgrade for Super Mario Wonder Is Worth It for the Extras

Commentary: Super Mario Bros. Wonder’s Bellabel Park DLC is here this week, but it’s more about lots of chaotic multiplayer minigames than new courses.

I want a new Super Mario Bros. Switch 2 game as much as anyone, but almost a year into the console’s first year, it hasn’t happened yet. Mario Kart? Mario Tennis? Mario Party? Yes. New Yoshi game? That’s happening soon, too. And now, we have the next closest thing: The wonderful 2023 Super Mario Bros. Wonder has a Switch 2 downloadable-content pack for $20 that’s, well, sort of a new Mario game, just a week before the Super Mario Galaxy movie arrives in theaters.

I’ve been playing it for the past week, and it’s worth the upgrade if you like multiplayer Mario. If not, well, you might consider it anyway.

The awkwardly named «Super Mario Bros. Wonder — Nintendo Switch 2 Edition + Meetup in Bellabel Park» is an add-on to Wonder, but it’s really just focused on building out a whole bunch of multiplayer party modes. The new course variants and minigame challenges, while welcome, require online multiplayer or local multiplayer play to work. For most of this new Switch 2 update, you can’t play offline on your own.

The multiplayer games cover dozens of challenges and themes — some turning everyone into bouncy balls, others making everyone rush to collect the most coins. You can throw up to four players locally on the Switch 2 at home or up to 12 players online at once, and it gets busy fast. I can see screaming breaking out with kids.

I played an hour or so of multiplayer sessions, and it was fun. But I haven’t gotten to play with lots of others online yet other than that. Still, it does feel sort of like Mario Party Super Mario Style, as opposed to Super Mario Bros. game extensions.

The DLC does have some extras you can still enjoy on your own. Seven new miniboss stages have been added into the game, featuring all of the Koopalings to take on. They’re the extended universe of Mario enemies, and each of the levels has the miniboss use a strange new power to melt the world in clever ways.

A new Toad Brigade Training Camp mode also offers up dozens of little challenge stages to beat, all remixes of existing Wonder levels. Some involve surviving without touching enemies or coins; some you have to defeat all enemies or collect all coins before time runs out. They’re addictive and hard, and I’m glad for them existing.

Nintendo also tried to add some fun extras: Bellabel park has lots of flowers you can collect by watering plants with «Bellabel water» you collect by completing tasks. And you can decorate parts of the park. It’s sort of neither here nor there for me, though, because I come to Mario platformer games to play fun levels, not decorate gardens. Pokemon Pokopia is the place for that.

Rosalina and a Luma Star are extra characters you can play with, but Rosalina doesn’t do anything truly new and the Luma Star is a co-op option. There’s also a weird Flower power-up now that turns you into a walking flowerpot, throwing flowers upward to attack enemies or hit blocks. It was OK. It’s not my favorite new extra.

Maybe that’s what feels missing here: Wonder threw all sorts of wildcards out into the game, from new enemies to strange Wonder Seeds that transformed levels. Bellabel Park feels more like a multiplayer-focused remix than a bunch of new single-player whimsy.

I like the multiplayer games on tap more than I liked the Switch 2 add-on for Mario Party Jamboree. They’re probably worth it if you’re a Switch 2 owner with a big family or lots of friends who want to play.

And even though I appreciate the resolution boost to the graphics, the Switch 2 graphics upgrade is hard to spot since the game’s «older» graphics have a retro look that still looked great before the upgrade (to me, at least).

What I really want, of course, is a truly new Mario game. Who doesn’t? That’s not on the table yet. But maybe, just maybe, Wonder’s Switch 2 pack is a little appetizer before that news eventually comes. But as revamped Switch 2 game editions go, Wonder’s extras are the best yet and turn this game into a truly multiplayer-rich bunch of fun.

Technologies

Verum Finance — the future of digital payments

Virtual Verum Finance cards can be linked to Apple Pay and Google Pay, giving users seamless access to in-store payments, online shopping, hotel bookings, flight purchases, and more worldwide.

The cards work globally, enabling payments without geographic limitations while providing a high level of security and full control directly within the app.

Issuing a card takes just a few minutes and does not require switching to third-party services — the entire process is handled within Verum Messenger.

Users get a unified solution for communication and finance: from messaging to managing payments and digital assets in one application.

Download Verum Messenger, get your Verum Finance card, and start using it today.