Less manipulation in the world of crypto? Really? If you could, I'd love to hear your explanation as to why because as I understand it, there's far more manipulation in crypto.
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Less manipulation in the world of crypto? Really? If you could, I'd love to hear your explanation as to why because as I understand it, there's far more manipulation in crypto.
The are only a few exchanges that allow you to short cryptos (sell shares that you don't have), and currently none are available to the US. I should've added that in there. I want to also reiterate on the fact of the bullshit analysts that work for firms that can sway the price of good quality stocks.
Of course, I defintely agree on your point about BS analyst. I mean, they work for the same companies underwriting the stocks, so their recommendations should never be viewed in a vacuum. That said, the reason why I'd argue that there's more manipulation in crypto is because there are no fundamental valuation metrics to apply to crypto currencies, entire price movements are driven by sentiment. If a single well known figure, releases positive or negative sentiment whether this be through a single tweet or article, these opinions can shift the market +/- 20% each day. That is not healthy and not the kind of manipulation that's possible in the stock market. Also, pump and dumps are super easy to orchestrate in the crypto market, especially on coins with small market caps or exchanges with low volume. While pump and dumps do occur in the stock market, they are far more difficult to orchestrate and require much more capital.
You make a good argument and I agree that those kind of pumps (McAfee) exist, but nothing you said was factual. Even the biggest pumper McAfee, if you look at the coins he tweeted they are still up massively from where they were even after the dump. We can't even say that anything in crypto is a pump and dump yet because it is all speculation and everything is pumping anyways, whereas the stock market you have companies that have had negative millions in revenue for years. Also the US stock exchange market cap is 28 trillion and the cryptocurrency market cap is not even 3% of that at 800 billion, so there's no way crypto manipulation moves more dollars as the stock market does. Shorting (selling stocks you don't have) and margin trading (trading with money you don't have) is deceitful and manipulative.