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The stock idea is dumb, in my opinion, because there were safer (no SEC) ways that required less capital and didn't require fancy trade accounts. For example:
by dkersten 6y ago
The stock idea is dumb, in my opinion, because there were safer (no SEC) ways that required less capital and didn't require fancy trade accounts.
For example: buy up a load of super cheap shitcoins. Can be done for under $100. Then tweet from an exchange like Binance that they will shortly be listing said shitcoin. Watch the price go up, sell.
Or, with a bit more money, short one of the cryptocurrencies, tweet from a big exchange that they were hacked, profit on the panic selling.
The nice thing is, they could do one or even multiple of these and still do the scam.
- DabbyDabberson 6y agoif you're someone whose regularly traded 10s of thousands of certain stocks over the last few years, it would be nearly impossible for them to detect a $100k profit from stock manipulation. especially a high volume stock like TSLA
- janmo 6y agoEspecially that Tesla is shorted so much. That said, shorting even with leverage requires you to have some money to invest. If you are 17 you are most likely broke.
- DabbyDabberson 6y agoBut the fact that _I_, could have made a higher return still holds. If I was 17 and broke, yeah the whole stock manipulation thing wouldn't be my first choice.
- dkersten 6y agoIf you’re someone who regularly trades you already have money and are unlikely to be hacking twitter accounts. Certainly a 17 year old isn’t going to be in that category.
- jb775 6y agoHow exactly do you short a specific cryptocurrency?
- dkersten 6y agoYou go on Binance, BitMEX, Bybit, FTX, Phemex or any other exchange that offers futures or perpetual swaps that track the bitcoin (or whatever) price. This is basic stuff. You can create a BitMEX account in minutes, load some bitcoin in and short with 100x leverage with minimal time or effort, just need a small amount of bitcoin to trade with. He could have done the scam on eg Elon Musks amount to get some bitcoin and then pulled this scam on an exchange using the money from the first scam
- flingo 6y ago> load some bitcoin in and short with 100x leverage Sounds like a great way to have a crooked exchange make you insolvent very quickly. Be very careful using any kind of leverage.
- dkersten 6y agoIf you don’t trust your exchange not to commit that kind of fraud, then you shouldn’t trade on it at all, as there are many ways they could defraud you even if you trade at 1x. There are plenty of. reasons why I wouldn’t recommend trading at 100x, but “the exchange might commit fraud” isn’t at the top. Still, in the described scenario, where you use a scam and market manipulation, 100x seems like a great tool.
- jb775 6y agoAre any of those exchanges based out of the USA? And do any of them not allow USA based customers? My concern is if I made a great trade at 100x and then go to transfer bitcoin and they freeze my account saying I need to provide proof of residency or some BS.
- 6y ago