What is Shilling?
Let's find out Shilling meaning, definition in crypto, what is Shilling, and all other detailed facts.
Shilling is when someone actively engages in the disguised promotion of a cryptocurrency. The ultimate goal is to create excitement around the initiative so that people believe in it and want to invest in it. The more people want to invest, the higher the demand for the token becomes, and the more the price rises.
Traditional financial markets prohibit the use of shilling. However, because there are no strict rules for cryptocurrencies yet, it's unclear whether it is considered lawful or illegal advertising. Besides, keep in mind that crypto shilling is not obvious, it's usually disguised. Therefore, you should always keep your eyes open for the red flags. The main red flags include:
- When an influencer is promoting an unknown cryptocurrency.
- When an individual or individuals invest a large amount of money into a specific cryptocurrency.
- When founders or members of the team secretly endorse their tokens.