Perseus: The UCL Tool Shining a Light on Crypto Pump-and-Dump Schemes

By OUINEX

A groundbreaking new tool from University College London is garnering attention in the crypto world and causing unease in shady Telegram groups.

Named Perseus, after the Greek hero who defeated Medusa, the system is designed to identify and track pump-and-dump schemes in cryptocurrency markets, a practice where traders coordinate to artificially inflate a coin’s price before selling off at a profit, leaving ordinary investors holding the bag.

Developed by a team of computer scientists and financial researchers, Perseus uses a mix of machine learning, network analysis, and public blockchain data to detect unusual activity and link it to suspected coordination channels, often on platforms like Telegram or Discord.

“We’re trying to bring sunlight to an area that thrives in the shadows,” said Dr Marta Beltrán, one of the lead researchers on the project. The sophistication of pump-and-dump groups is increasing, along with the tools used to expose them.

Perseus is already being tested in cooperation with regulators and exchanges. In recent months, it has helped flag suspicious trading in several low-cap tokens, sparking further investigations.

The timing couldn’t be more crucial. As cryptocurrency adoption grows, so too do the opportunities for market manipulation. Retail investors, especially newcomers, are often lured into these schemes by viral posts promising quick riches.

The team behind Perseus is now calling on regulators and crypto platforms to integrate the tool into their fraud monitoring systems. “It’s not just about enforcement,” said Beltrán. “It’s about prevention.”