I have mostly been a general spectator of this forum for a long time.I finally decided that i would sign up and start sharing.
I am fairly new to investing and i currently stick to just investing in direct mutual funds and ETF’s. I am planning to get into equity investment soon.
I know the technology behind the cryptocurrencies and i have a good understanding of the underlying technologies. I Have started learning IBM’s hyperledger and really see a multitude of applications for it in a “not so distant” future. As a long time lurker of the internet, i simply wanted to find out how “pretty much unknown” crypto currencies were going through the roof. I realized there is a very organized pump and dump involved in this.
I have heard that there are numerous whatsapp group (that you have to pay to get into) involving thousands of users who pick a crypto currency and decide to pump -> hold on -> dump in a very successful fashion.
Very recently i found out real proof of this happening.
Since there is no real arbitrage opportunities available in the crypto exchanges (since they simply synchronize their lowest ask with some of the bigger exchanges), all it takes is a few thousands of users to execute this in a major exchange and the effect of it ripples across exchanges over the world.
Lack of regulation allows them to do anything they want and its a bit scary for people who hold some of the relatively newer crypto as a long term investment.
Absolutely agree that bitcoin should not be regulated. But the institutions trading it should be regulated. Bitcoin still only forms 42.5 percentage of the market cap. There are so many pump and dump crypto currencies created by the day ( It actually takes less than 20 minutes to create your own ). Take commodity market for example, govt doesn’t get to regulate a commodity like corn, but it does regulate the commodity exchange. Many are already moving away from bitcoin (since it is kind of being humbled and stabilized by cboe futures and such) and moving towards altcoins since they have more potential for a rally. Thats where the real danger lies. Because they get pumped by groups like this with the hope of making it into a broader news circle so that they can dump and make money.
Been noticing the fun of all the new coins making it to the top 50 list. It’s insane, quite baseless and random. Ripple is valued more than Uber right now!
I see a quite a lot of pump and dumps.
Ripple as a company is trying to replace SWIFT transfer (which is great since it speeds up international bank transfers) which is great i guess.
XRP as a currency though has no reason to even exist. Its pre mined, fully centralized by a company and they hold more than 70% of it.
So the only way to get it the coin is by paying money and XRP is not an ICO (meaning you don’t get a part of the business like you do in case of company launched tokens).
ICO’s more or less act like private equity where you can claim some sense of ownership to the company atleast whereas XRP and Ripple (as a company) are not associated.
Just think of this for a second; A Company creates a currency pumps it up with one or two projects they got for their company, increases its value and dumps it.
Scary, isn’t it ?
And its all perfectly legal.
In case of Ripple there were simply 2 reasons
The fact that AXIS used their technology for facilitating international payments made the news and it gave 1 level of boost.
The other one was the rumors spreading that it was gonna be listed in coinbase.
These are quite baseless in normal world. In crypto world, its a huge deal
No way any serious business would take something like for example Ripple for their operations. I am bet that SWIFT will still be there anyway. That scheme which you describe there later looks like a total ponzi scheme for any financial advisor or so.
). Take commodity market for example, govt doesn’t get to regulate a commodity like corn, but it does regulate the commodity exchange. Many are already moving away from bitcoin (since it is kind of being humbled and stabilized by cboe futures and such) and moving towards altcoins since they have more potential for a rally. Thats where the real danger lies. Because they get pumped by groups like this with the hope of making it into a broader news circle so that they can dump and make money.
, its everywhere its called wyckoff price cycle . Just trade along with them for good profits.