Pump-and-dump schemes remain among the most prevalent forms of market manipulation: coordinated traders deliberately inflate the price of a security and then sell at a profit, leaving ordinary investors to bear losses. Current surveillance systems struggle to detect these schemes in real time due to centralized data silos, opaque reporting, and latency. This research investigates blockchain technology as a decentralized, immutable ledger to curb pump-and-dump activities by increasing transparency, enabling instantaneous monitoring, and automating detection. The study presents a blockchain-based surveillance framework that logs all trades, price shifts, and volume changes on-chain. Smart contracts flag suspicious price-volume dynamics with preset rules, triggering alerts to regulators. The proposed model seeks to strengthen market integrity, mitigate manipulation risks, and create a tamper-proof, auditable environment for financial markets. This research demonstrates how blockchain can reshape market regulation and foster a more reliable environment for investors.
Blockchain, Market Manipulation, Pump-and-Dump, Stock Market Surveillance, Smart Contracts, Transparency.
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