Pump and Hodl Scammers Revealed - ON VIDEO!steemCreated with Sketch.

in #cryptocurrency7 years ago (edited)

Anatomy of a Pump and Dump

As many of you know I am firmly against pump and dumps. I debated posting this video because I didn't want anyone else to get caught up in his net, so I waited until the risk was outweighed by the benefit. This video is days old, ancient by crypto standards. The people pumping these coins don't have your best interests in mind.
They're referring to their pumps as "pump and hold" instead of pump and dump, because they claim their intent is to raise the price and hold it.

If you think about these questions for a minute:

Q: Why raise the price if you're holding?
A: The price is irrelevant if you're holding. The only reason to raise a price is to realize gains.

Q: How do you realize gains?
A: Selling aka Dumping.

Q: If a coin you have is up 4,000%, are you selling or holding?
A: you're selling.

The only thing "different" about the pump and hold is that the pumpers continue to pump while they exit significant positions. The influx of money while they exit makes sure the price doesn't slip down during their exit. Once they exit, they move on to the next "pump and hold".
Chaincoin, Synx, like 15 more, these "masternode" hype coins are inactive coins they're hyping. You can check out my article on looking at gihub for activity here.

The Video

This video was posted live a few days ago on the since deleted Synx HODL facebook page. These guys all work together, pump a few, dump on people, move around to another few.
Masternodes are not "advanced hodl technology" they're a scaling solution. Also while we're debunking things, Dash is not a chaincoin fork, it's a bitcoin fork. You can see it on it's github.

The star on the order book is his sell order at 2:10 - 2:15.

Summary

The important part of this video is around 2:10-2:15. His commentary about whales with sells includes himself. This is what a pnd looks like. A dude who prebought telling other people to buy in, while already having a target set to dump on them. The star in the order book represents his order. Price at the time this video was shot on facebook live? 16k sats. Price of his sell? 21.6k sats. That's about a 30% gain on more than 7567 units of SYNX, assuming he has just bought and hadn't bought earlier in the pump. BTC at this point was $2502 USD. Based on these values, you can see that he intended to immediately profit about $1000 USD with this 5min facebook live video. This wasn't his first push to pump this coin, so likely not his only profit. "...remember guys 5k coins are a masternode, so it's pointless to dump" - dude with a sell preset 30% above the price at the time, for more than needed for a master node.

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Good work putting this together, upvoted.

Q: Why raise the price if you're holding?
A: The price is irrelevant if you're holding. The only reason to raise a price is to realize gains.
AA. First part I disagree with, long term steady rises is what makes holding worth it, also short term spikes draw attention and new investors so price is relevant even to long term holders.

Q: If a coin you have is up 4,000%, are you selling or holding?
A: you're selling.
AA: This doesn't seem relevant to this video but regardless here is my opinion. I still hold coins I have 4k% gains on, why? I'm not ready to pay taxes on it nor am I under the impression that is the top.

The only way to realize gains is to sell, whether you sell now or sell later, you're still selling or you haven't actually made anything.

Right, not sure how that is applicable to my comment. I specifically said the first part I disagree with which was the part about the price being irrelevant if you're holding.

Okay, so how is the price relevant if you're holding?

I answer that in my original comment. "First part I disagree with, long term steady rises is what makes holding worth it, also short term spikes draw attention and new investors so price is relevant even to long term holders."

I would also like to note that I can leverage my portfolio value with lenders for real-estate investments, just like a stock portfolio. So I can use the value of the portfolio as reserves because its liquid, so even though I'm holding, the price being higher gives me more leverage.

friends this telegram pump group is very successful. I would recommend https://t.me/JokerCryptoPump

If this happen on stock exchange his ass would be in jail already.

I agree, and with him being in the US with their regulations looking to define crypto in that manner, he still could be down the road.

lmao you have no idea what your talking about. You should start writting yahoo news articles because your technical analysis on topics you have no idea about is just as good as theirs. FUCKIN SHIT!! It's people like you who just write to write on something that plays on people's emotions with no real proof for a few dollar gains, that makes me sad for steemit. YOU FUCKIN SUCK :) Taking things out of context and twisting them for your own personal gains.

Hello Albert, I do in fact know what I'm talking about. I'll be continuing my due diligence Saturday series today. It may be helpful for you to read last saturday's, this Saturday's, and the coming ones so that you can learn to vet projects.
I noted that you didn't offer any substance to your comment, instead relying on personal attacks and cursing. Let me know if you have interest in discussing things as an adult with both assertions and support that are relevant and not attacks. :)

Wow, this catch is spot on! I doubt I could have seen the star on the sell order if you haven'n explicitly mentioned it. I hope more people will learn from your articles regarding PND scams.

Thanks for the support, I'm trying to make crypto safer by making scams less rewarding. :)

Well, I guess they saw that most people understood P&D groups were just scammers ready to get money from the people that are new to this.

So they changed their tactic, and now instead of telling people to buy and sell they tell people to buy a lot and accumulate(hodl), that is the easiest way to have a quick raise on a coin.
The problem with those guys is that they act like they have a community that is defending the coin's value, very sneaky.

Only informations about a coin, analysis and your own thinking should be the instruments that lead you to invest into something, unless you were lucky enough to have a coin that got pumped and sell for a gain.

Trusting anyone just because they show their faces it not smart at all,they are wolves dressed as sheeps, just trust yourself and informations that come from trustable websites/people, informations, not opinions.

Yes, unfortunately shifting tactics are fooling many people. I write to help people new to crypto and this was something that unfortunately caught many of them up in the hype.
I write a saturday series focused on doing due diligence in crypto to help as well.
I chose to share this video because it highlights the friendly, trustworthy sheep with just a glimpse of the wolves' teeth.

This is blind trading, he is not even showing a chart that gives any kind of details of what is actually happening. 1500 ppl trading, but no real data of what sentiments are within the group. Not selling at a loss is also indication of an unexperienced trader. don't trade because you found a cheap coin. Trade the liquid, low risk, and data rich currencies. The more informed you are the better.

I agree, that's why I've started a due diligence series where every week I provide one part of the strategy I use to do due diligence.

Snagged by the Bittrex star on your own order. Good work detective! And what an absolute a-hole of a guy :(

Thanks, He's actually been cussing me out and threatening to report me for defamation since I posted this on facebook. "Ummm dude bro you're on video" lol

While it's very likely that there was a pump and dumpp group behind a portion of this, I think you have over looked a key area in you analysis. Holding the right amount of these coins gives you the ability of running a "Master Node". Increasing the overall price of the coin would make the master nodes more profitable. With the rate that a SYNX MN generates coins it would be more profitable then most mining rigs if the coin was sitting around the $1 mark. I do believe there was a large number of people with that in mind during this time. However I was awake all night watching the first pump of this last week and I can tell you that there was more then one group involved in this. I happened to join the pump and hold slack just to see what was being said and in all honesty the majority of the people in there were holding. While monitoring the chat in the pump and hold group I was watching the orders / chart and I can say with a high level of certainty that there was another group involved in this PnD. The Pump and hold group was only setting support levels. Generally about 10k behind the current bid in an attempt to support the uptrend. At no point in the slack channel did I witness anyone order a pump. In fact a few people that said it was time to dump were banned. Just my two cents of the events. I set a stop loss so I didn't get burnt just incase it all went to custard.

I am well aware of the hype surrounding "masternode" coins. Dead coins are dead coins, no matter the tech that they had when they were actively maintained by their devs. There has been no activity in 9 months on their github. Additionally, It doesn't matter how many people "hold" - hodlers don't generate transactions for masternode holders to capitalize on. It's a dead project, currently people have this concept of bringing these masternode coins "back", if they were good projects, they would've never left. A sucker is born every minute, I guess.

Thank you Ash!

No problem, I'm glad you enjoyed it :)

These guys are all over Facebook. With the sudden renewed interest in Bitcoin, there are countless posts to various FB cryptocurrency related groups from new people essentially asking "what to buy." They are easy prey. I follow a couple of these scammers just to see what their game is like, but never take their advice.

Yes, it's unfortunate. I help admin a beginner's group on facebook and have spent literal hours deleting their spam.

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