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Traders Are Talking Up Cryptocurrencies, Then Dumping Them, Costing Others Millions (wsj.com)
Dozens of trading groups are manipulating the price of cryptocurrencies on some of the largest online exchanges, generating at least $825 million in trading activity over the past six months -- and hundreds of millions in losses for those caught on the wrong side, according to a Wall Street Journal analysis. From a report: In a review of trading data and online communications among traders between January and the end of July, the Journal identified 175 "pump and dump" schemes involving 121 different digital coins, which show a sudden rise in price and an equally sudden fall minutes later.
A pump-and-dump scheme is one of the oldest types of market fraud: Traders talk up the price of an asset before dumping it for a profit and leaving fooled investors with shrunken shares. The Securities and Exchange Commission regularly brings civil cases alleging pump and dumps using publicly traded stocks. Manipulations of cryptocurrencies are no different, but regulators have yet to bring a case in the more opaque market for them. The SEC declined to comment.
A pump-and-dump scheme is one of the oldest types of market fraud: Traders talk up the price of an asset before dumping it for a profit and leaving fooled investors with shrunken shares. The Securities and Exchange Commission regularly brings civil cases alleging pump and dumps using publicly traded stocks. Manipulations of cryptocurrencies are no different, but regulators have yet to bring a case in the more opaque market for them. The SEC declined to comment.
This article is light on details and makes all sorts of false and misleading claims. Of course is comes from WSJ.com which is lame stream media interested in pushing Windows for desktops, and see all that liberal politics full of Trump derangement syndrome? This won't fool insightful investors like us who know better and buy bitcoin as often as possible because we know it will be worth BILLIONS very soon as the ecomony takes off and America soars the future. Real truth is that Bitcoin as an investment strategy is %100 SECURE. Many many smart investers say way more secure than gold or any Fiat currentcy. I know this and sites like Slashdot.Org have published countless stories CONFIRMING it. So what are you waiting for? Buy more Bitcoin today!
Legalized fraud/theft/robbery is the core of the entire problem.
Except in this case, the "victims" volunteered to be robbed.
When the same work should be worth the same.
Compensation should be proportional to the value produced, not the effort expended.