0x0 1 Massive Pump and Dump Scheme Uncovered in the Crypto World

Massive Pump and Dump Scheme Uncovered in the Crypto World

1. Manias, like the recent crypto craze, are driven by investors’ expectations that an asset’s price will continue to increase, leading to amazing returns.

2. The price of an asset in a mania is usually far above its fundamental value, which is determined by its utility.

3. The crypto mania was supercharged by social media influencers who touted their pet cryptos to the masses.

4. The use of influencers and other mechanisms to artificially drive up the value of an asset is known as market manipulation, and it is highly illegal.

5. The SEC and CFTC should have been keeping an eye on all this market manipulation and taking steps to protect investors.

6. Crypto investments are purely speculative in nature and there is no social justification for allowing them in retirement plans or accounts.

7. The best solution would be for the SEC or CFTC to aggressively pursue market manipulation within the crypto space.

 

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