Stock Market Penny PnD's
In stock markets, the pumping and dumping of penny stocks is illegal in many areas, including the US. Investopedia has a nice write up on it here.
What This Means for Crypto
ICO's are on the verge of being considered securities sales in the US and elsewhere.
As crypto approaches being considered securities in the US, these regulations will apply to cryptocurrency PnD's as well. That makes situations like SYNXHODL and the CHAINGANG questionable from not only an ethics perspective but legally as well.
This chart is referencing pump and dumps in traditional stock markets
Always sucks to see unless you're the big beneficiary.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Even then, how are people comfortable knowing they screwed people over? You can make some hefty bags without intentionally hurting others through trading.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I do find this a little un-true after being in crypto for a fair bit, all coins PUMP there is NO way to tell when someone will take profits. Sure there are Pump N Dump groups but i would assume people participating in them know the deal. Its essentially a "crypto lottery". If a company releases news about their coin and it pumps hard, then the deal don't go through the coin dumps. Is that a pump N dump? A coin might go up just a bit and it happens to catch peoples attention and newbies buy the high and it dumps because long term holders want profits... is that a pump n dump? In crypto there is no such thing as a "natural rise" its the volatility that makes us so much money. Its people in crypto who already have a NICE CHUNK that want regulation because THEY already made the money. If regulations come into play and a coin pumps and you want to take profits but can't... cause they essentially STOPPED the trading of the coin.. well you are just going to turn crypto into the normal stock market.. Where 5 percent gain is Amazing. Which would suck big time, i think being able to spot a pump n dump is a good skill to learn, but if people choose to participate in them, its their choice. I hate when governments or entities put "laws" in place to tell you want you CAN"T do.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
You're missing the blatant manipulation aspect. It's illegal in US investments. So, assuming that any crypto are available in the US, that any of them are owned by US customers, and that any of them considered securities, this regulation already applies and will be enforced eventually. I won't be putting myself at risk by blatantly manipulating prices, particularly on youtube, facebook live, and in slack, and on twitter. That's just shortsighted and risky.
While regulation is against my principles personally, intellectually and realistically, I am as subject to them as anyone else and won't be putting myself at risk. I am merely making others aware of the issue as well.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit