Bittrex, Bitcoin exchange raises fraud alert on pump and dump coins

Bittrex, Bitcoin exchange raises fraud alert on pump and dump coins

Bittrex, one of the largest digital currency exchange has raised alarm over pump and dump coins that are being peddled on its exchange.

In a statement by Bittrex, the digital currency exchange warned that many altcoins and new coins recently out of ICOs are pushed on the platform through the use of fake news, pump and dump tactics to gain public interests.

“Bittrex actively discourages any type of market manipulation, including pump groups. Consistent with our terms of service, we will suspend and close any accounts engaging in this type of activity and notify the appropriate authorities”.

To guard against such scams on its platform, Bittrex said it will:

“Bittrex will be removing orders that are older than 28 days. As we’ve communicated in the past, many of these orders have no reasonable expectation of being filled and clog the order books.”

Apart from this measure, the exchange said it will:

“Within the next 2 weeks, the minimum trade value for orders will go from 50,000 Satoshis to 100,000 Satoshis. We will also require a minimum trade quantity. For example, DOGE trades at 22 satoshis. The minimum trade quantity is 4500 DOGE and the minimum trade value is 100000 satoshis. The smallest order in the book is 100000 DOGE at 1 satoshi each. The largest order in the book is 4500 DOGE at 2 btc each”.

“Within the next 2 weeks, on a per market basis, we will be instituting minimum tick sizes that are based on the current price of the market. The target is to have minimum trade sizes that are near 0.1% of the current price. The current minimum tick size is 1 satoshi. For example, Ethereum trades at 0.0577 Bitcoin. Bids and asks can only be placed in 0.0001 increments. So the next level on the bid side of the orderbook will be 0.0576 and 0.0578 on the ask.”

Bittrex is one of the largest digital currency exchange with over USD1.2 billion daily trading volume.