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This happens even in real markets let alone cryptocurrencies. You will find people pumping stocks on news that it might be bought by Amazon or something.
by thisisit 9y ago
This happens even in real markets let alone cryptocurrencies. You will find people pumping stocks on news that it might be bought by Amazon or something.
- loceng 9y agoAnd you have people trying to lobby for war, so certain stocks will perform better or worse; adding into the mix the ability to make money off of predicting future failure of a company/organization incentivizes bad behaviour even further.
- prklmn 9y agoThat’s true, but pumping and dumping is indeed co sidered securities fraud, so there’s an incentive not to do it in the stock market. Cryptocurrencies aren’t considered securities by definition, so it’s open season to whoever would like to participate in market manipulation.
- JumpCrisscross 9y ago> Cryptocurrencies aren’t considered securities This has not yet been decided [1][2]. [1] https://www.bu.edu/jostl/files/2016/01/21.1_Alberts_Final_web.pdf https://www.bu.edu/jostl/files/2016/01/21.1_Alberts_Final_we... [2] http://apps.americanbar.org/buslaw/newsletter/0014/materials/investmentch2.pdf http://apps.americanbar.org/buslaw/newsletter/0014/materials...