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So when they DO make forseeable plans and execute those plans to sell, then it will have happened “after” they pumped BTC. How long should a company hold before
by EGreg 6y ago
So when they DO make forseeable plans and execute those plans to sell, then it will have happened “after” they pumped BTC. How long should a company hold before a pump and dump become fine?
- emteycz 6y agoWhat pump and dump are you talking about?
- EGreg 6y agoPump = buy a lot of something so the price goes up. Let's say $2 billion of it <wait for more people to buy it as a result of the price movement, and news, etc.> Dump = sell at the higher prices and match the increased demand This is whats being advocated by market analysts, and it would be considered "fine": https://www.benzinga.com/analyst-ratings/analyst-color/21/03/20024869/tesla-should-sell-its-bitcoin-and-buy-back-shares-to-create-positive-momentum-says- https://www.benzinga.com/analyst-ratings/analyst-color/21/03... If companies don't collude but do it in a sequence, then when does it become ok? As a different example, in 2014 employees alleged that Silicon Valley companies colluded to depress their wages, by acting like a cartel: https://equitablegrowth.org/aftermath-wage-collusion-silicon-valley/ https://equitablegrowth.org/aftermath-wage-collusion-silicon... But cartels can form without having to collude, merely by people acting in concert on a meme or belief (like HODL or SQUEEZE THE SQUOZE) and this seems fine! https://arxiv.org/abs/1201.3798 https://arxiv.org/abs/1201.3798
- gamblor956 6y agoA pump and dump scheme requires that the "pump" be achieved by making fraudulent representations about the assets being "pumped" to artificially increase their value, followed by said assets being offloaded at the artificially increased value. McAfee did that all of that. Tesla/Musk did not (no false statements of fact or offloading at artificially inflated values). Additionally, a "cartel" has a legal definition which requires deliberate coordination of activity (aka "collusion"). Independent activity in which everyone does the same thing without coordination is not a cartel, because the coordination aspect of it is key to the illegality of the act.
- EGreg 6y agoSo a group of people pumping a cryptocurrency by buying it, and then letting the skyrocketing charts in exchanges and news about it bring new people into the mix, and then selling, is totally fine? Even if this group of people coordinates their activities?
- vntok 6y agoAs you wrote it, yes it is completely fine.
- EGreg 6y agoPlease back that up with links to a legal argument or SOMETHING. I realize it’s hard to prove a negative but can you at least back it up with authoritative links of some sort?
- gamblor956 6y agoIn the U.S., activities are legal unless there is a law stating that they are illegal. We don't need to provide an authoritative link that the above is legal; you need to provide some sort of authority that it is not.
- gzer0 6y ago"According to the indictment, McAfee allegedly evaded his tax liability by directing his income to be paid into bank accounts and cryptocurrency exchange accounts in the names of nominees." John Mcafee was breaking US law and got caught.
- wongarsu 6y agoYou wait until your previous comments don't have an outsized effect on the market price anymore.