# Pump, Dump, and then What? The Long-Term Impact of Cryptocurrency Pump-and-Dump Schemes

arXiv: https://arxiv.org/abs/2309.06608 · HTML: https://mlsanity.com/paper/2309.06608/

## Key facts

- Cited by 2 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 12 Sep 2023.

## Built on by (most cited first, 2 of 2)

- [zScore: A Universal Decentralised Reputation System for the Blockchain Economy](https://mlsanity.com/paper/2503.05718/) (2025)
- [PumpSense: Real-Time Detection and Target Extraction of Crypto Pump-and-Dumps on Telegram](https://mlsanity.com/paper/2605.09431/) (2026)

## Abstract (arXiv)

The pump and dump scheme is a form of market manipulation attack in which coordinated actors drive up the price of an asset in order to sell at a higher price. Due in part to a lack of enforcement, these schemes are widespread within the cryptocurrency marketplace, but the negative impact of these events on the coins they target is not yet fully understood. Drawing upon a novel dataset of pump events extracted from Telegram channels, an order of magnitude larger than the nearest comparable dataset in the literature, we explore the differing tactics of pumping channels and the long-term impact of pump and dump schemes across 765 coins. We find that, despite a short-term positive impact in some cases, the long-term impact of pump and dump schemes on the targeted assets is negative, amounting to an average 30% relative drop in price a year after the pump event.