Pump & Dump Scammers About To Get In Big Trouble! CFTC Is Coming!
Unfortunately the Cryptosphere is still full of scammers and fraudsters as it simply has been to easy for them until today. Basically no one has been really watching them before the big price rally at the end of last year. It´s pretty different these days though as the Officials are starting to clean up the space.
Almost daily one can read about government regulations, crackdowns on scams and new warnings being published from different organizations. Just now the CFTC published a warning about pump & dump schemes, asking everyone to report the people behind those obvious scams:
(Source - cftc.gov)
The statement from the CFTC basically says it all and will probably lead to a sudden death of many pump and dump groups. Fortunately as they are all just massive scams, which only make the ones wealthy who run them.
That being said, please listen to the officials this time:
Customers Can Protect Themselves
Customers can best protect themselves by purchasing only alternative virtual currencies, digital coins, or tokens that have been thoroughly researched – to separate hype from facts. The bottom line: Customers should not purchase virtual currencies, digital coins, or tokens based on social media tips or sudden price spikes. For more virtual currency resources, visit the CFTC’s dedicated virtual currency web page, cftc.gov/bitcoin.
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Cryptocurrency is here to stay all tgose govts try to crack it down are wasting their time. I know most govt officials have invested already but dont want people to out of pure greed.
Actually this talks about a concept that boggles my mind. The rampant spamming and shilling in the crypto sphere is mind-boggling.
Most of the stuff happening is illegal. YouTubers not disclosing their sponsorships, endorsing straight out scams and getting away with it with some angry looks gives our crypto community a bad rap.
Pump and Dump schemes fall into the same category. It's "okay because it is crypto". Until you realize that hard working people are losing their savings because some greedy and shady people are exploiting an unregulated system for their own gain. We need to stand up. We need to fight back. And we should actively ask for regulations, otherwise we will indirectly ask for the death blow for crypto.
With this, cryptocurrency become less volatile.
@steembusiness I understand regulation and I also understand how Crypto's could make Govt. Irrelevant...........
Want to make money fast? Just expose those scammers :)
I actually like that statement that you could be compensated between 10% - 30% on any legitimate information that leads to a monetary sanction. Good job CFTC!
Something that really affects all those in the world of cryptocurrency in the U.S. is the U.S. tax laws and crypto being defined as property and not currency. I think it would be EXTREMELY helpful and beneficial to your followers if you would do a video with a CPA that would explain how cryptocurrency is taxed, give written examples on a dry erase board from start to finish of buying say ETH with USD, to balance buying an altcoin, later selling back to ETH and then from ETH to USD again. Also, inform everyone of what they need to keep track of so they can correctly file taxes.
PLEASE PLEASE PLEASE, DO A VIDEO ON THIS!
Yes that's definitely a big reason why only 0.04% of people who have filed tax returns this year in the US have reported crypto gains / losses/ anything crypto related. 1--it's a huge burden and honest reporting is just as likely to lead to being audited as not reporting any crypto activity (in my opinion) 2--The government has very little resources at this time to track people's crypto profits like they do with forms sent to the IRS via stock brokers.
Many tax services and CPA's don't even know how to approach reporting crypto transactions for tax year 2017 right now. So it's up to the individual.
Boooooo US government.
In a way, people are more and more aware about scammers and all kind of ponzi scheme that appears thanks to crypto.
Article like yours helps to spread the world and at the end, it means new people being aware.
So thank you for that !
Pump and dump groups have less and less power
No authority of government on krpto, agencies like it should make people aware about these scammers
It's good to see this being addressed in an offical way (even though many on Steemit don't like 'officialdom'! Unless there are regulations, rules are broken and scammers have a field day. Although Steemit is a great community, it is just that, and there is no place for scammers and wrongdoers who rob others. This is after all, a microcosm of the real world.
It was about times that someone started dealing with these folks. Crypto has been crazy when it comes to gains and yet people are still greedy enough to try and recreate similar short term gains and then dumping on new people in the process.