Is Skycoin exposed as a pump-and-dump? CEO alleges insider trading

Skycoin has been called out as a scam, as the CEO of the project, Synth, allegedly admitted to the coin having an “insider trading” group. In an audio recording released by a user named Jared Dunn on Twitter, the CEO is quoted as saying:

“There was a whole channel full of special insider trading information where everyone was getting rich, basically trading on Skycoin.”

Even as many doubt the veracity of the claim, as it is an audio recording posted on Twitter, it is accompanied with screenshots of the Telegram group, as seen below.

Synth said:

“…[we knew] who’s dumping, what’s going on, buy the dip and buy this and buy that…everyone was doing the opposite of what the public was doing. There was a whole insider information channel on the thing, and it used to be open. Sudo came and made the room private.”

The person referred to as ‘Sudo’ is allegedly Sudo TCPdump, Head of Community Management at Skycoin. Synth went on to say:

“All the special insider information is locked off in a room that Sudo is admin of, and that’s when democracy ended. He’s going to start a pump group, and he’s going to start charging people 10 BTC to get into the room.”

Skycoin has been called out for being a scam for months by various online communities. Notably, they sell a ‘Skyminer’, which is a mining kit, for running the Skycoin network. The coin, however, is premined. Most recently, a post on the cryptocurrency subreddit stated that something “weird” was going on in the Skycoin Telegram.

“…someone is dumping skycoin and I have suspicions it may be the dev team and they’re trying to “fake” being mad at each other… Members on the team are having arguments on telegram and even throwing words calling each other autistic…. lol. Also threatening to “expose” each other for what? I don’t know… It is a circus.”

This occurred before the voice message of the person alleged to be Synth was released on Twitter. Both of these points collate with the price of the coin. The user who leaked the audio clip also said:

“This was obvious as the accumulation of skycoin before @binance listing followed by the huge dump sell off reminiscent of the coinbase BCH listing. Obvious insider trading and the CEO of Skycoin is now busting people out. The big problem is Synth was well aware of this prior.”

Skycoin was recently added on Binance, with the price going up from around the $24 mark to about $34 within the day on May 23rd. It also saw it’s ranking by total market cap go up to the 50s. While it suffered a loss of 40% last week, it is trading now at $13.

The community, however, insists that Sudo and Synth were “playing around”, like user Martin on Twitter said:

“That was joking around. You must be new to the chat. OP has slowed down the audio so it sounds sad and serious”

User AS_Empire on Reddit said:

“This is the type of information that the SEC is going to hunt down when they are investigating cryptos. Pure idiocy to be involved in this type of stuff from his position. Not only makes Skycoin a pump and dump, it makes crypto look amateur in general.”

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