Shilling: Everything to Know

By  Beluga Research August 21, 2023

Image for Shilling: Everything to Know


  • Regarding cryptocurrency, "shilling" is the deceptive practice of promoting a digital asset for personal gain, often through false or exaggerated claims
  • Cryptocurrency shilling has been present since the early days of Bitcoin, as individuals exaggerated claims or spread false information to drive up prices
  • Shillers employ tactics like disseminating misleading information, creating a false sense of urgency and using social media platforms for amplification
  • Shilling often involves misleading information, market manipulation, loss of trust and regulatory concerns


Regarding cryptocurrency, "shilling" is the deceptive practice of promoting a digital asset for personal gain, often through false or exaggerated claims. The rise of cryptocurrencies has brought about a proliferation of digital assets, each vying for attention and investment.

With thousands of cryptocurrencies in existence, competition to stand out from the crowd is fierce. This competitive landscape has given rise to shilling, as individuals and groups attempt to gain an advantage by promoting specific cryptocurrencies. Shilling can be seen as a form of marketing, albeit with questionable ethics when it crosses the line into deception.

A Brief History

Cryptocurrency shilling is not a new phenomenon. In fact, it has been present since the early days of Bitcoin, when online communities passionately discussed the merits of different cryptocurrencies. As the market expanded, so did the opportunities for shilling. In the past, shilling was often carried out by individuals that held substantial amounts of a particular cryptocurrency and sought to drive up the price through exaggerated claims or false information. However, with the advent of social media and the democratization of information, shilling has become more accessible to a wider range of participants.

Shilling: Everything to Know

To understand the mechanics of cryptocurrency shilling, it is essential to explore the various methods employed by shillers. One common tactic is the dissemination of misleading or exaggerated information about a cryptocurrency's potential. Shillers may highlight unrealistic price predictions, promise guaranteed returns or exaggerate the technology's capabilities.

These tactics aim to create a sense of FOMO ("fear of missing out") among potential investors, enticing them to invest without conducting thorough research.

Another method employed by shillers is the creation of a false sense of urgency. They may claim that a cryptocurrency is on the verge of a major breakthrough or that a limited-time opportunity exists for early investors. By instilling a sense of urgency, shillers aim to rush individuals into making impulsive investment decisions without considering the risks involved.

Social media platforms have become hotbeds for cryptocurrency shilling. Shillers often create multiple accounts or engage in coordinated efforts to amplify a message. They may use tactics such as "astroturfing," which involves creating the illusion of grassroots support for a cryptocurrency through fake accounts or paid individuals. Additionally, shillers may employ tactics like "pump-and-dump" schemes, wherein prices of a cryptocurrency are artificially inflated through coordinated buying and then selling off of holdings, leaving unsuspecting investors with losses.

Getting Started

Shilling in the cryptocurrency world is fueled by the decentralized nature of the industry. Unlike traditional financial markets, there are no strict regulations or oversight governing the promotion of cryptocurrencies. This lack of regulation creates an environment wherein individuals can freely express opinions and recommendations about specific digital assets. However, this also opens the door for potential abuses and manipulative practices.

One of the primary motivations for shilling is the potential for personal gain. Shillers often aim to create hype and drive up the price of a particular cryptocurrency, allowing them to profit from investments. They may use various tactics to generate interest, such as highlighting the project's potential, emphasizing positive news or developments and downplaying any risks or criticisms. Shillers may also employ FOMO tactics, urging others to invest quickly before they "miss out" on potential gains.

Unique Aspects

Cryptocurrency shilling has unique aspects that differentiate it from traditional marketing or advertising techniques. First and foremost is the role of social media and online communities. Platforms like Twitter, Reddit and Telegram have become breeding grounds for crypto shilling, where enthusiasts and influencers gather to discuss and promote various projects. The viral nature of social media allows shillers to reach a wide audience rapidly, making it an effective tool for spreading a message.

Another unique aspect of cryptocurrency shilling is the prevalence of affiliate marketing programs. Many crypto projects offer incentives to individuals who refer others to invest in a specific token or participate in an ecosystem. This creates a financial incentive for shillers to promote specific cryptocurrencies, as they can earn a commission on the investments made through referral links. While affiliate marketing itself is not inherently negative, it can incentivize shillers to prioritize personal financial gain over providing objective and unbiased information.


  • Increased Awareness - Shilling can help raise awareness about a particular cryptocurrency, especially in the early stages of development. By promoting the project, shillers can attract attention from potential investors and users who may not have otherwise discovered the cryptocurrency.
  • Fostering Community - Shilling often takes place within communities of cryptocurrency enthusiasts. These communities can provide a supportive environment for individuals interested in learning more about the project. Shillers can contribute to the growth of these communities by sharing information, answering questions and engaging in discussions.
  • Potential for Price Appreciation - Effective shilling campaigns can generate significant interest and demand for a cryptocurrency. As more people invest in the project, the increased demand can potentially drive up the price of the cryptocurrency. This price appreciation can benefit early investors and contribute to the overall success of the project.


  • Misleading Information - Shilling can involve the dissemination of misleading or exaggerated information about a cryptocurrency. Shillers may highlight only the positive aspects of a project while downplaying or ignoring the potential risks and challenges. This can lead to uninformed investment decisions and financial losses for individuals who rely solely on shilling for information.
  • Manipulation - Shilling can be used as a tool for market manipulation. In some cases, individuals or groups with significant holdings of a particular cryptocurrency may engage in shilling to create artificial demand and drive up prices. This can lead to market distortions and unfair advantages for those involved in the manipulation.
  • Loss of Trust - When shilling is perceived as deceptive or manipulative, it can erode trust within the cryptocurrency community. If individuals feel misled or taken advantage of, they may become skeptical of future shilling efforts and may be less likely to participate in new projects or invest in cryptocurrencies altogether.
  • Regulatory Concerns - Shilling practices can attract regulatory scrutiny, particularly if they involve the promotion of securities or involve fraudulent activities. In many jurisdictions, there are laws and regulations that govern the promotion of investments and financial products. Shillers who fail to comply with these regulations may face legal consequences.