Software Pump and Dump (tautvilas.lt)

In 2026, the emergence of new "pump and dump" schemes in the software development landscape is raising alarms, as AI-driven coding capabilities have made it easier for creators to generate subpar software products without solid foundations. The phenomenon gained traction in 2025, where AI models allowed for rapid code generation, leading to numerous projects funded by cryptocurrencies that ultimately remain underdeveloped and lack market viability. Cursor's hefty investments into a flawed browser exemplify this trend, as companies use flashy, incomplete products as marketing tools to inflate their valuations. The latest example, called Clawdbot, has been heavily promoted across tech platforms, luring potential investors into purchasing CLAWD coin tokens based on superficial hype. However, upon review, analysts suggest it is another poorly constructed software effort that is unlikely to succeed. This trend underscores the necessity for skepticism in the AI/ML community, as many projects might be propped up by financial interests rather than genuine utility. Stakeholders are urged to scrutinize the authenticity and practicality of such initiatives to avoid falling victim to the hype and ultimately holding worthless assets.