Blockchain for Preventing Stock Market Manipulation A Focus on Pump and Dump Detection through Blockchain Surveillance

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. Swati Shinde "Blockchain for Preventing Stock Market Manipulation: A Focus on Pump-and-Dump Detection through Blockchain Surveillance" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-9 | Issue-6 , December 2025, URL: https://www.ijtsrd.com/papers/ijtsrd99916.pdf Paper URL: https://www.ijtsrd.com/computer-science/computer-security/99916/blockchain-for-preventing-stock-market-manipulation-a-focus-on-pumpanddump-detection-through-blockchain-surveillance/swati-shinde