Abstract

With the popularity of Bitcoin, a cryptocurrency market emerged. However, because of insufficient supervision, the market attracts scams, for example, pump and dump (P&D) scheme, a famous fraudulent behavior in stock markets, has been found rampant in the market. To help deal with this issue, as a preliminary study, this paper proposes an improved apriori algorithm to detect user groups which may involve in P&D schemes. The validity of the algorithm is verified by using the leaked transaction history of Mt. Gox Bitcoin exchange. Furthermore, by exploring some of the detected user groups, many abnormal trading behaviors in the exchange found. These findings provide new insights into the behavior of users in the cryptocurrency market, thus leading to meaningful implications for policymakers, investors, and managers dealing with the cryptocurrency market.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.