It seems like the two popular buzzwords AI (Artificial Intelligence) and Cryptocurrency, are all set to merge. As indicated by two analysts, AI can help foresee cryptographic money value, and additionally, it can rectify frauds before they take place.
Jiahua Xu and Benjamin Livshits crafted an enlivened algorithm at Imperial College London that can foresee when fraud schemes are going to happen, which offers a promising way to prevent them from that scams. Jordan Belfort is behind these master schemes and also popular as Wolf of Wall Street.
These fraud scandals work with cleverly simple tricks. These clever tricks followed by a group of mischievous individuals who purchase some crypto money which is not very clear to understand. Afterward, they create hype around the crypto coins so that other crypto traders, who are unaware of these scams, may purchase these coins that in turn make the coin’s value rise.
As soon as the coins price gets a great hike, that malicious group sells their reserved coins and gets huge profit quickly before anyone tries to sell them off. On account of digital currencies, all these scenarios take place within a couple of minutes, and they’re progressively common. Xu and Livshits revealed that almost every day approximately two fraud scams happen and they produce around USD 7 million in a month by exchanging crypto assets.
This year, around 236 dump scams has taken place from July 21 to November 18, as researched by Xu and Livshits. They say that a range of them have taken place just because of the unusual purchase activities in the target currency. This would be truly consistent with the insiders acquiring the hike in the currency ahead of the scam, which could be the perfect way to capture target coins before the scam starts.
Xu and Livshits then utilized this information and allowed their machine learning algorithm work. Around six different major malicious activities reported between October 30th and November 6, from which five activities reported as pump and dump schemes. The analysts still can’t confirm that algorithm for public use; however, this information can be helpful in preventing this activity from spreading in future.