Bitcoin pump and dump rules
Without more competition, Bitcoin Cash would skyrocket. In the stock market world, if someone promised to pay investors a premium for their shares of stock in a company and investors started buying in order to cash in on that premium and it drove the price of the stock up, if the person didn't fulfill his promise, they would be thrown in jail for violating Pump and Dump rules or manipulating prices.
While investors got cleaned, the developers of the Segwit2x Pump and Dump are laughing all the way to the bank with the inside knowledge they had. I sure hope you were not a victim. As a newbie to crypto currency and still learning how all the scams work, would love to hear your opinion on this one. You have completed some achievement on Steemit and have been rewarded with new badge s:. Award for the number of posts published.
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Every few days, , strangers come together online to buy little-known cryptocurrencies, also known as altcoins, at exactly 2 p. Then, anywhere from 30 to seconds later, they sell them en masse or at least try to. Those who buy and sell at the right time can potentially make out like bandits. This will pump the price straight up. After this the dumping part comes in. After the price rises tremendously up because of the pumping, we start selling at a good profit. This is called dumping.
The pump group ethos is simple: Buy low, sell high. The implication is that investors outside the pump group will see the rapidly rising price and rush to buy in, anxious not to miss the next Bitcoin-style gold rush. But the reality is a bit more complex. These groups are promoted heavily on Facebook, Instagram, and Twitter as both ads and general posts, but they almost exclusively operate on semi-anonymous messaging services like Discord and Telegram.
The whole scam works like this: First, an organizer grows their group to an acceptable size 2, seems to be the minimum, based on member-hungry Discord and Telegram posts through promotion and by spamming join links.
Next, they will find an unheard-of coin and direct everyone to buy it, driving the price up. Commonly called altcoins or less politely, shitcoins , these alternative cryptocurrencies are easy to make and generally worthless. I spent a day lurking in 12 of these groups ranging from large Big Pump Signal, K to small Cali Pumps, 2K and chatting with their members. In most established groups, the pumping process itself is surprisingly well-organized.
After the pump signal is given, group members flood the chosen exchange, buying up as much of the coin as they can for cheap. Members are also expected to promote the coin on social media in order to create buzz around it, which is intended to attract new investors to the currency. As BuzzFeed reported, members of these groups sometimes even create fake celebrity tweets or fabricate news stories in order to affect the price of a coin.