Market Manipulation & Pump and Dump Groups in Crypto

Introduction

The crypto market is flat lately and everyone wants to compete with Bitcoin to overtake the king. Many have come with robust innovation and bring innovative improvement.

The market is full of crap that even myself I stopped to follow the ICOs market or shit coins. At this point, I concentrate my energy and time on things that I believe will have a chance of mass adoption.

The latest crypto bull run has put many actors in the dark with a bad mood. Not everyone has made money and many have lost in the process of greed and speculation.

Shitcoins

Everyone wants to create coin and revolutionize the world with the buzzword blockchain.

What is scary is that nobody seems to find a real-world utility or what to do with their coins? They list their tokens on weird trading exchanges with some spiders and dust walking around. It is hard to connect and use those and you need to have a Ph.D. to understand the fundamentals.

The biggest problem is they have low liquidity and it is easy to manipulate the price movement. It is easy when is not regulated and no mechanism is put in place.

Market manipulation

Most of the coins are manipulated and decentralization is a utopia in the crypto sphere.

Projects like Bitcoin or Ethereum are controlled by the people who process a lot of coins. They can manipulate the price movement when they sell or buying a huge chunk in one shot. You need to follow their steps if you hope to make some profit.

Pump and Dump groups

I never followed one of those groups and I will never do that in the future. Pump and dump groups are organized people that pump the price of an asset and sell it at the top.

The unfortunate that tried this method loses money when the price starts to go in the center of the earth.

In a regulated market, this is considered a crime because you manipulate the price and hurt investors. Unfortunately, many people want to make easy money and prefer to act like a monkey.

The evolution of the market

We are in a phase where these pump and dump groups continue to operate in obscure trading exchanges. The ones that are the most popular are the ones with a lot of liquidity and mechanisms in place to deal with those groups.

Trading exchanges do not have a choice to put in place regulations and the KYC for their core business. Sometimes it is better to follow the rules otherwise they are at risk for their business.

What do we need to avoid?

Don't waste your money and time with pump and dump groups or you are at risk of losing money. It is not a way to make a sustainable living and it is not cool to make money with gullible investors.

Take the time to learn the technology and have fun to discover great gems in the crypto sphere. Many bad actors exist in the crypto realm and it is better to educate yourself to spot them before getting scammed.

You work hard for your money and it is so easy to lose it all if you don't make the effort to educate yourself.

Conclusion

Crypto is here to stay but it will take time before the entire world will use it. Scammers and bad actors walk around where they can make easy money without effort.

This is what happens when you are in a new market that looks like the far west. In the meantime, with vigilance and education, you can avoid them and invest safely in this space for a good future!

Chesatochi.com - For the love of crypto

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Posted from my blog with SteemPress : https://chesatochi.com/market-manipulation-pump-dumps-groups-crypto/

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