South Korean Experts: Let’s Use AI to Halt Crypto Pump and Dumps
South Korean experts think the dangers of crypto pump and dumps remain, and argue that an AI-powered “prior detection system” would protect investors.
Per the media outlet Enews Today, the experts were speaking at a seminar named “The Present and Future of Cryptoasset Regulation.” The lawmaker Kim Seong-won, of the People’s Power Party, hosted the seminar.
The participants were speaking ahead of the launch of the Virtual Asset User Protection Act, which comes into force on July 19.
However, the speakers said they thought the act would not be enough to safeguard crypto traders in South Korea.
Some urged the government and industry to use tools like AI to help fight back against pump and dump-type price manipulation.
Chae Sang-mi, a professor at the Department of Business Administration at Ewha Womans University, claimed that crypto markets remain vulnerable to “pump and dump” manipulation attempts.
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Pump and dump schemes typically see groups of individuals work together to buy low-cap and little-known tokens.
They then spread rumors and (often) fake news online about the coins. They then seek to sell these coins to buyers who have been drawn in by these rumors.
The goal is to create sudden spikes in prices, generating large profits for the groups who coordinate them – but leaving those who bought into the hype with losses.
Pump and dump schemes have plagued South Korean markets in recent years, where low-cap
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