New Techniques Deployed To End Bitcoin Pump & Dump

With the markets sitting in a very volatile state, the risk of a large pump and dump is at an all time high. Simply put, falling Bitcoin prices means that investors are currently very vulnerable. Realistically speaking, since a large majority of the Bitcoin market is owned by a minority of wallets, investors can get together to buy in bulk and then sell in bulk in order to pump and dump. The benefits of this are simple – they control the majority of the market so can buy at the best price, and can agree a time to sell, at the best price.

Does that make sense?

Here’s a more conclusive description of a pump and dump according to Investopedia:

“The scheme can be perpetrated by anyone with access to an online trading account and the ability to convince other investors to buy a stock that is supposedly ready to take off. The schemer can get the action going by buying heavily into a stock that trades on low volume, which usually pumps up the price. The price action induces other…

Read Full Story : Crypto Daily™

2018-12-06 16:03:00

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