CFTC issued a Customer Protection Advisory warning customers to beware of and avoid pump-and-dump schemes within thinly traded or new "alternative" virtual currencies, digital coins or tokens. For example, the advisory warned customers to avoid purchasing virtual currency or tokens based on tips shared via social media, as fraudsters will spread rumors encouraging potential victims to react to a currency's or token's rising prices before beginning the dump. In order to avoid falling victim to such fraud, the CFTC encouraged customers to thoroughly research potential investments, stay informed about tactics commonly used in investment fraud and avoid investment opportunities they don't fully understand.
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