I am continiously watching cryptocoins (altcoins) going up rapidly. Some for a day and some for a few days. Some clearly are pump and dumps. Maybe all of them. The question I asked myself was: "Can I benefit from them and how do I get in the club?" Note that I should asked myself if it is legal and if it is smart to act on them.
"Blue Horseshoe loves Anacott Steel"
In the movie Wallstreet (1988) Gordon Gecko uses this phrase to allow his pump and dump group to start buying. These kind of schemes are illegal. The group buyes shares for a low price. Often in small orders so the price is not gaining too much. When everything is set to go they start the hype. In the movie the boiler room (2000) they used phone calls to inform their clients. In that case they would buy real shares and boost them. Instead of cashing in, they would make their clients to buy more. This would even make the price go up even further. At a certain point every amateur wants to get in on the action. At that point the initial sharks sell their shares. In small quantities offcourse. The stock price is saturating and will suddenly fall. Leaving everyone with nothing. Or shares that are worth almost nothing.
Because the crypto currency market is not regulated, every type of trick is being used. These so called pump and dumps to manipulation of prices by bots. I mean look at some coins websites... It often isn't even clear why there is so much capital in it anyway. Yes. Even steemit. So my conclusion is that pump and dumps are happening. It is legal for now. But if you look at the bigger picture you will notice something else. The whole crypto market is a pump and dump! I mean what happend before may 2017? Yes stocks were increasing. But suddenly everything exploded. Hundreds of coins and off the charts all time highs.
If you were wondering if this is a bubble. Offcourse it is. A big one. Everything will come down eventually. Crashing down. Maybe causing the next recession: the cryptocrash. I think some big coins will survive. Bitcoin and ethereum. They will crash offcourse too, but they will remain alive. So is it wise to get in after may? I think not. Whenever you see a spike in prices you are too late! Riding the pumps makes you a sucker. Trust me. I did rode two pumps and both times the prices went down. Waiting for a new pump is dangerous. Also trusting if a coin will remain bullish. Coins who are used for a pump and dump they call dead. Or a shitcoin. Coins who are being pumped they call coins that are going to the moon.
A friend of mine holds shares from before the hype. All he does is watch his bankroll grow. The $10.000 he invested is over $100.000. If cryptocurrency really is the future you should buy bitcoins and ethereum now! Regardless the current price. Hold on to them even if you are pretty late. But pretty late often means you are the sucker. But who knows? Just keep on trading, but watch the total market cap. If it is saturating...
Nevertheless. Bitcoin dropped yesterday after an all time high of ethereum. I bought bitcoins. I trust it will reach the $3.000 ceiling again. My advice: get out in time and if you want to use the pump and dumps go short whenever you see a coin makes a sudden move upwards. Make sure to get out if it doesn't drop. Oh... and if somebody would like to add me to a pump and dump group. Please Invite me ;-)
Only the one-dimensional mind would buy your argument "it is not btc or eth, hence it is a shitcoin".
No, it's not!
Yes, there are shitcoins out there. Many will go belly-up.
But not all.
The key is to identify the good from the bad and not let pump-dump activity influence you. You can even benefit from it by being informed and make your own informed choices.
It is not illegal to ride a wave.
You still do not share my point of view?
I heard there is a legit pump and dumps occurred due to natural circumstances.
If yes, what are those scenarios?
Nice article... I do appreciate it.... I have written my personal experience regarding pumps and dumps, and I would recommend everyone to stay away from those things..... :)
Do go through this article also and resteem it if you found useful.... It will help everyone to be educated and make thoughtful Investments about good coins having a future instead of pumps and dumps or the get rick quick schemes.... :)
https://steemit.com/pump/@rahulbasu/pump-and-dump-in-cryptocurrency-on-telegram-scam-alert
Beautiful post
friends this telegram pump group is very successful. I would recommend
Telegram:
https://t.me/JokerCryptoPump
https://t.me/moonpumpteam
Video: