Research On Manipulation Of Crypto Token And Supervision Strategy

With the development of blockchain technology,more and more large institutions have begun to join the research on blockchain technology and crypto token,and many well-known asset management companies have brought crypto token into the investment scope.But in the absence of regulation,price manipulation is often blamed on digital communications and is an important factor affecting market efficiency and participant motivation.The paper uses the event study method to study the influence of pumpand-dump schemes on the prices,the comprehensive value of the project,the behavior of developers,the behavior of users and the market ecology of crypto currency.We developed the relevant arbitrage strategy and put forward regulation strategy to the regulatory department.We found that although the pump-and-dump behavior of crypto currency lasted for only a few minutes,its influence on the price and value of crypto currency lasted for several months.At the same time,the agent variables of developer behavior and market ecology showed negative abnormal changes 30 and 50 days before the pump-and-dump respectively,which meant that there was a certain correlation between developers and the pump-and-dump behavior.Based on the research in this paper,we successfully developed an arbitrage strategy based on the pump-and-dump behavior of crypto currency,which has the characteristics of low risk and high return.Finally,we provide relevant Suggestions to the regulatory authorities based on the research in this paper.