Are hedge funds capable of manipulating the market? (part 01)

in Project HOPE4 months ago



Greetings friends, today we are going to talk about the Hedge Fund because I think that they are the main responsible for the increase in the value of most altcoins and BTC as well, I think that the investment capacity of the hedge fund is very powerful and although cryptocurrencies They have only been in the market for a few years, hedge funds have operated on Wall Street for decades, they want to convey that they do impressive analyzes, develop the best research and because they are the most intelligent they generate profits, well this is not always the case, many of them operate outside the law and many others have been caught committing illicit acts especially insider trading, let's see some examples.

The case of Bernie Madoff, who at that time had more than 40 years of experience in the stock market, had been president of many regulatory institutions and was even one of the promoters of the NASDAQ index, ended up doing a classic ponzi scheme taking money from Juan to pay Pedro. They sentenced him to 150 years in prison and restore 170 billion dollars.

The Galleon group, founded by Raj Rajaratnam born in Sri Lanka and nationalized American, managed a fund of 7 billion dollars, was found guilty of influence peddling and sentenced to 11 years in prision, the prosecution in the trial presented as further evidence of 43 recordings that demonstrated how he searched and obtained privileged information. In an operation Raj was informed that Warren Buffet would do business with the Goldman Sachs bank, so before the end of that day Raj bought shares of Goldman Sachs, the next day the deal was announced and Goldman shares rise so Raj sold and made a profit of $ 900,000.



I do not want to make this publication any longer so we will continue in a second part, but what I want to make clear is that if irregular things have happened in the stock market for many years, it is logical to think that these irregular practices also happen in the world of cryptocurrencies.

Thank's for read

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hi @ramsesuchiha, despite how decentralized we claim to be on the blockchain it is to be expected that irregularities like the ones you mention to us in your writing will occur. Likewise the call is for caution in our investments. Thank you for your contribution

thanks you for read

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