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Madamjoy

Dump and Pump in crypto

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Pump and dump goes with the economics theory of demand and supply. People buy low and sell higher for profit. A coin is pump when investors buy coins there by creating  a huge or massive demand of that coin. A sudden increase in the demand of that coin  makes the price goes up and then they dump it when the price is high for them to get profit. In stock investment Pump and dump are unaccepted and seen as unethical and illegal but in the crypto currency market it is legal and acceptable.  Most pump and dump are done by a group of investors who are connected  in a group where they  share messages to their members on what coin to buy and  when to sell them .Example telegram group channel is mostly used. An individual can also pump and bump coin by putting a sell order before buying the coins he wants to pump then he starts buying at low price while he has a sell order running.Pumping and dumping is unhealthy as it kills some coins.They never rise after being dumped. A lot of day traders make profit that way.

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What @munareal said. Personally, I don't agree with pump and dumps since it is basically manipulating the market for your own (or your group's) personal gain.

It is a selfish act that hurts developers and their projects as well as the people who invested and believed in them. Not to mention that pump and dumps hurt the crypto community as a whole by giving people the impression that such acts are actually common in the cryptoverse. Remember all the bad press crypto was getting? Well, this ain't helping any.

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When you notice a coin that increase suddenly within just a minute and the next minute it goes down suddenly then that is a pump and dump. This is usually done by the admins of the group wherein they encourage its members to participate in the pump scheduled in a time and date agreed by them. Usually the ones who profit from this are only the admins because they are buying ahead of the members and some who uses bot to buy and sell because if you have slow connection and you are operating it manually then there is a tendency for you to lose. Besides, Bittrex also warns its users to not participate in pump and dump because they will suspend your account if you are suspected to do so.

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I think that all the admins/devs who think in a "short-termish" advantage will not be successful in the long run. And this pump and dumps, are definitely a "short-termish" strategy.

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you should look at pac coin and tron's chart on coinmarketcap. the recent price increase a few weeks ago with those two coins is an example of a pump and dump.

Edited by MissPuppy

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IDD if you see a chart of a coin going GREEN RED GREEN RED everytime in a spike its a pump and dump 

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The reality is that as someone said earlier the ones that profit from the pump and dump are the admins. 

I was following a couple of groups on Twitter and discord to understand and see what coins they do and the pumps and dumps are so quick that the chance for normal people to profit are very slim and you can lose half your trade value in the time it takes you to press sell. 

Eventually you will probably lose your gains even if you did manage to make them. 

There is also a lot of bots who will always be faster than you. 

One group I was following had 200,000 members. 

Personally pump and dump goes against my principles and it is to me the same as cheating 

 

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On 1/15/2018 at 6:47 PM, yndye said:

When you notice a coin that increase suddenly within just a minute and the next minute it goes down suddenly then that is a pump and dump. This is usually done by the admins of the group wherein they encourage its members to participate in the pump scheduled in a time and date agreed by them. Usually the ones who profit from this are only the admins because they are buying ahead of the members and some who uses bot to buy and sell because if you have slow connection and you are operating it manually then there is a tendency for you to lose. Besides, Bittrex also warns its users to not participate in pump and dump because they will suspend your account if you are suspected to do so.

What's your ethical valuation about that Bittrex's policy? To what extent should Bittrex have control about our greatest leeway to make decisions about OUR money? 

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Hi Euclid, very interesting question.

In think bittrex has a right because you are doing it on their platform and their priority is long term business as they care about their future profits and they have a right to protect their business interest 

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On 1/30/2018 at 4:51 AM, Alvi said:

Hi Euclid, very interesting question.

In think bittrex has a right because you are doing it on their platform and their priority is long term business as they care about their future profits and they have a right to protect their business interest 

 

Hi, Alvi. I'm not really sure whether Bittrex has sufficient regulatory framework to monitor such ALLEGED economic misconduct. I dunno how we're gonna reconcile your perception about the issue with the emerging AI-powered trading platforms that are already functioning to trade really fast. The issue you raised has so much to do with the economic gap between those who have less cryptos and those who have a lot of cryptos. Those who have a lot of cryptos have all the chances to manipulate the price. Maybe we can pursue further ethical valuation. If they got those through legal means, i strongly believe that they all have the rights to decide when and when not to release those cryptos in the market. But as a social science and philosophy educator, I look at this as another stratifying factor but I love cryptocurrencies because it entrusts the value of money to the people. Yeah, some whales can have a lot of cryptos by just buying but even those who don't have a lot of resources can also have a lot of cryptos by building strong networks. 

 

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Euclid, very interesting points , but let me ask you how many people do you know that really make money in the pump and dumps.

Unfortunately even crypto favour the rich, look at the market now. The poorer people need to cash out their crypto as they need the money and worried if it will go lower etc. The rich can just leave their currency there and wait. 

 

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5 hours ago, Alvi said:

Euclid, very interesting points , but let me ask you how many people do you know that really make money in the pump and dumps.

Unfortunately even crypto favour the rich, look at the market now. The poorer people need to cash out their crypto as they need the money and worried if it will go lower etc. The rich can just leave their currency there and wait. 

 

I'm not rich by any means yet I left mine in hopes it will turn around I'm losing in all mine but its what I put in knowing I might lose it all. So hodl is what I'm doing. If it goes up I will gain so I'm going with the upside I will get back what's lost and maybe much more

Edited by vhighfill
Didn't finish point

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Hi vhighfill. 

I have put in a little bit when it was going up (i am a newbie in crypto) and from my ath i must be down about 40% if i look at fiat and maybe 15% if i look at portfolio on bitcoin value

Took out some fiat actually so i dont stress and will leave the rest and try to hodl or change some coins 

Good luck and hope we are both lucky :)

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