Anti-Dumping Policy Definition in Cryptocurrency

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.