Glossary

Anti-Dumping Policy Definition in Cryptocurrency

Back
Paxful Team
Paxful Team
Which crypto will boom in 2025

In the world of crypto, “dumping” means offloading a huge chunk of a token all at once—usually to crash the price on purpose. 

It’s not exactly playing fair. That’s where anti-dumping policies come in. They’re rules designed to stop these rapid-fire sell-offs before things spiral.

These policies aren’t just about market control—they’re about protecting investors and keeping things from turning into a free-for-all. 

For example, some exchanges have guardrails in place: if a token’s price nosedives too fast, trading might be paused temporarily to let things cool off. Think of it as a market time-out.

Now, take the infamous SQUID token. It started off at a humble $0.01 and then shot up like a rocket. Sounds exciting, right? Well, not so much. As prices soared, investors found out they couldn’t sell. 

The project had policies—including something labeled as an “anti-dumping measure”—that basically locked them in. 

So when the scam behind the token unraveled, the price crashed from nearly $2,900 to fractions of a cent in minutes, and the creators walked away with all the funds. Ouch.

To avoid these kinds of disasters, some crypto projects include lock-up periods for early investors—basically saying, “Hey, you can’t just bail the second you make a profit.” And in decentralized setups, DAOs (Decentralized Autonomous Organizations) often vote on these rules together. Community-first kind of thing.

Anti-dumping policies aren’t the only tools in the kit. Some projects also use token buybacks—where a company buys up its own tokens to reduce supply. It’s a move that can boost value, stir up excitement, and, let’s be honest, sometimes just fuel speculation.

Share this post

Paxful Team

Paxful Team

Paxful is a marketplace where people can buy and sell cryptocurrencies directly with each other. You can get digital money instantly and pay with debit, credit, cash, and any currency.

You might also be interested in

A Look Back at Bitcoin Price’s All-Time High

Tips & Tricks

A Look Back at Bitcoin Price’s All-Time High

Bitcoin reached a record high of $123,400 on July 14, 2025. Explore the full history of BTC’s all-time highs and how its price has evolved.

Paxful Team
Paxful Team
7 mins read
Why is Bitcoin Going Up? What Triggered the Price Increase?

What's New?

Why is Bitcoin Going Up? What Triggered the Price Increase?

It’s been a powerhouse week for Bitcoin. Fresh highs, strong bullish sentiment, and growing belief that this rally might still have legs.

Paxful Team
Paxful Team
7 mins read

Start trading on Paxful today

Trade Bitcoin, Ethereum, Tether and more with over 14 million global users

Sign up now