Bloodbath Despite Crypto "Mania?" Maybe For Wall Street Money That Just Got In (Or Can't Yet)
When reflecting on whether one has been naughty this year, or whether whichever dip of the day is just normal volatility, it can be good to step back and again consider the question being asked by many - is crypto in a mania phase?
If people accuse the cryptocurrency market of being in a mania, there is at least one sub-sector of it on which there can probably be no debate. I call it the "Companies That Add Blockchain To Their Names" sector. Riot Blockchain was probably the most noteworthy example, but if you'll forgive the indulgence, I found the most recent at least 250% more hilarious: (charts per Zero Hedge)
Just to be clear, these companies are quite literally simply adding the name "blockchain" and seeing enormous gains in market cap.
To be honest, it's tough to blame whoever was responsible for this decision. Regrettably, the "Alcoholic Iced Tea" market is one of the many topics on which I am not exactly an expert. However, I can surmise that is it likely not an industry that is experiencing the kind of media hype and surging capital that cryptocurrency currently is, so I can see why a suit in an office somewhere thought that pivoting from bottling the results of mixing boiled mush-leaves with cheap swill into "blockchain technology" couldn't possibly go wrong.
The movements in these stocks look manic, but they are relatively small in total market cap. What we could be seeing here is some fiat that can't easily get to crypto champing at the bit to get "blockchain" exposure. They'll buy anything they can get their hands on, if it doesn't require a Coinbase account, selfie, week-long buy delays, etc....you get the idea. There could be a legitimate (legal) explanation for these pumps (mania). Ever tried getting your typical "financial advisor" to even purchase a crypto? They want to know if it's on ETrade.
Of course, there is clearly illegal insider training also going on. That bump above was definitely an insider. The SEC is basically toothless and will do nothing, but there's no way that wasn't inside information. C'est la vie.
In light of recent accusations of pumping-and-dumping coming to places like Coinbase/GDAX, it's wise to remember that this nonsense happens in every market, because every market has money involved, and people engage in garbage behavior to get more money. Further, financial markets allow humans to divorce themselves from their "victims" by more than the 6-degrees-from-Kevin-Bacon required to feel even the minimum degree of human empathy. This is why creatures that appear to be human beings can remain confident in their self-worth as a "good people" while simultaneously employed by Goldman Sachs in the daily manipulation of agricultural futures that result in starving entire countries.
There, we've finally come full-circle.
I'll cut this off before I get too ranty, but if you want to see more about these pump and dump stocks, check the Zero Hedge link at the bottom, as it contains more links within.
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Sources: Zero Hedge: http://www.zerohedge.com/news/2017-12-21/long-island-iced-tea-soars-500-after-changing-its-name-long-blockchain , Google
Copyright: Lemon.ly, CoinMarketCap, Bitfinex
Your mention of Goldman Sachs sparking food inflation through Gary Cohn's commodity index reminds me that I should probably update my GS venn since Cohn became director of the National Economic Council this year.
Do you ever feel like a salmon, endlessly swimming against a tide pointlessly that will never let up?
/cynicism
you nailed it.
Self-vote your cut-and-pasted comments in your own blog.
Nice graph. I imagine we will know in hindsight if the maniacal appearances were just sheets in the wind or tigers on train.
That was awfully poetic!
Goldman sach has intelligent leaders, and they have no scruples, they only have one goal, to win and keep winning through the opportunities they get at the price of a skinny chicken. Recently bought most of the bonds of Pdvsa, company of the state of Venice, imagine! If even the same state is responsible for opening the doors to pass and take everything. Anyway, maybe soon they risk themselves and they submerge more in this world, or perhaps they are afraid and not, dawns and we will see.
Greetings
"they have no scruples"
This is probably their key competitive advantage.
Happy to see you posting again every day Jason!
Thanks Jerry!
This is very interesting and I know so little about how all this works, but I just keep powering up. Iove the tongue-in-cheek humor and is there anywhere that Bacon doesn't show up??
There are many Bacon-free locations, but very few that aren't connected to him by 6 degrees of freedom (or less!)
Yep when I read this I fell out of my chair. Ridiculous...
In retrospect, it only got worse as Ripple touched $2+ temporarily.
The Big Players Cash Out There Money To Dump The Markets :) Now Btc 12k & tHAT what The Want To Buy Bitcoin With Lower Price :) & altcoin too To make a Big Big Profit :)
This actually works.
I just got in most of my positions just a few minutes ago feel pretty good about my buy's at this stage.
Since posting, the altcoin market has generally done quite well, at the expense of Bitcoin dropping below 30% dominance for the first time.
Just a needed correction thats all. We are all fine don't panic. You don't lose if you don't sell. If you have money nows time to buy buy buy
I agree, generally speaking. I'm also not personally bothered by paper losses.
However, it's still good to have a plan for every (inevitable) downturn.