Pump & Dump: Cryptocurrency

SUCKA!

The Wall Street Journal is reporting that their analysis of cryptocurrency trading has exposed at least 175 “pump and dump” schemes generating $825 million in activity over the last seven months.

It’s a game of musical chairs where anonymous traders use the encryped communications app Telegram chat rooms to talk up a cryptocurrency creating a gold rush buying sensation, then sell quickly (like in seconds) reaping profits at the expense of the “rubes” who bought in and held.

wolf of wall street

This is old hat in the securities business, made famous by the movie “The Wolf of Wall Street,” but the cryptocurrency market is unregulated and another version of the Wild West of investing.

Hope you’re having fun.

https://www.wsj.com/graphics/cryptocurrency-schemes-generate-big-coin/

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, balance, CFTC, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, Film, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , . Bookmark the permalink.

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