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Huh, got through the whole article without the author referencing the origin of the term “bucket shop.” Nothing new under the sun when it comes to market manip
by jpeg_hero 8y ago
Huh, got through the whole article without the author referencing the origin of the term “bucket shop.” Nothing new under the sun when it comes to market manipulation. I like the idea of a whole new generation of crypto market manipulators rediscovering techniques that haven’t worked in eh real markets in 100 years.
https://en.m.wikipedia.org/wiki/Bucket_shop_(stock_market) https://en.m.wikipedia.org/wiki/Bucket_shop_(stock_market)
The transaction goes "in the bucket" and is never executed. Because no trading of actual securities occurs, the customer is essentially betting against the bucket shop operator in a game based on abstract security prices.
- seibelj 8y agoMy understanding is that this is normal securities, not crypto. But it could also happen in crypto, just not this time
- cissou 8y agoI think a big difference here is that bucketeers knew they weren't actually buying the securities, and just waging against one another. The scheme in the article is like a combination of a bucket shop and a concealed ponzi scheme
- tumetab1 8y agoI always felt that some shops that only work with ETFs or derivatives look like bucket shops. In some cases it makes me even more suspicious when it seems that you're only trading within that shop... like a betting house.