Lets talk about pump and dumps.
Let's be rich rich pumping coins!
Did all of you fully understood what the "Wolf of Wallstreet" was doing to become rich over uneducated people by making them buy penny Stocks?
Pump and Dump was the name of the game.
Basically you slowly buy a big amount of an low trade volume asset (in his case, stocks that were traded below 1 dollar) then convince a big amount of people to buy the same asset.
Since the trade volume is very low, this big amount people (wich have no Idea How fimancial markets Works) buy will drive the prices to a very high number in a very short time (pump). Then, at that high price, the Wolf started to sell that huge amount of penny stocks he bought earlier, making the price fall like a bread with butter on both sides.(Dump)
Does this sound familiar on the crypto markets?
What is different here is that stock markets are regulated, and everyone knows what happened to the Wolf.
Below is a good video by Douglas Polk i Just found that hits the bullseye on explaining How cryptos pump and Dump schemes work.
(Btw, he is one of the few Youtubers that is worth to follow that talks about cryptos)
it's very dangerous to play that games this why we have to buy just valuable currencies and hold them for a while and then take the profit, I never participated in a pump or dump !
Last 48 hours have been very confusing for the #cryptocurrencynews. Can’t keep up with all those news. Korea added tax means there won’t be a #ban and new regulations will pump and dump the market a lot this year!
My latest post: "Bitcoin Talking Heads" - https://steemit.com/bitcoin/@nzfxtrader/pay-attention-to-the-bitcoin-talking-heads
This guys is funny.
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Yeah its totally legit.
Let's talk about pumps and dumps: if you're not getting paid for it, you're getting dumped on. Think about it, why would people make videos advertising pump and dumps if they made so much money?
Why people advertise pyramid scheme? Same answer here:
To attract the suckers who want to make "easy money"