How do Pump and Dump schemes in crypto differ from traditional finance? I) they are less prevalentII) they are more prevalentIII) they reveal the intention to Pump and DumpIV) they hide the intention to Pump and Dump

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BlackTom AI · Accepted Answer

Start by listing what each option is claiming about the statements I–IV. 
Option a) says I and III are true together. That would mean crypto pump-and-dump schemes are less prevalent (I) and they reveal the intention to pump and dump (III). The combination is inconsistent because the rest of the statements in the prompt suggest different prevalence and intentions, and the claim about revealing intent (III) is not inherently tied to I being true. So this pairing is dubious. 
Option b) asserts I and IV are true. That would mean crypto schemes are less prevalent (I) and they hide the intention to pump and dump (IV). This contradicts the commonly observed dynamic where crypto schemes often advertise or signal manipulation more conspicuously, and the idea of hiding intention runs counter to how some schemes publicize a pump to attract buyers. Thus, this pairing is problematic. 
Option c) claims II and III are true. Specifically, that pump-and-dump schemes in crypto are more prevalent than in traditional finance (II) and that they reveal the intention to pump and dump (III). The first claim aligns with discussions that crypto markets, due to lower liquidity and regulation in many cases, may experience more frequent pump-and-dump activity than traditional markets. The second claim suggests there are explicit signals or disclosures indicating manipulation, which could be interpreted as an awareness that such intent is observable to participants or regulators in crypto contexts. This combination is coherent and addresses both prevalence and signaling aspects. 
Option d) proposes II and IV are true. That would mean pumps are more prevalent (II) but they hide the intention to pump and dump (IV). This clashes with the notion in many analyses that at least some crypto pump-and-dump actions are publicized or observable, and the idea of hiding intent is less central to crypto-centric discussions. Therefore, this pairing is less convincing. 
In summary, evaluating the pairings against the two statements in question (prevalence and visibility of intent), option c) II) and III) provides the most consistent alignment with the typical understanding of crypto pump-and-dump dynamics, while the other options introduce contradictions about prevalence or signaling.

FINS5547-Cryptocurrency & Decentralised Finance - T3 2025

How do Pump and Dump schemes in crypto differ from traditional finance? I) they are less prevalentII) they are more prevalentIII) they reveal the intention to Pump and DumpIV) they hide the intention to Pump and Dump

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