5 ms·
It is a scam and the same scam happens with sports betting, but it's a bit more nuanced than that. Trader A buys a 50,000 person email list. Sends 25,000 an a
by codyswann 5y ago
It is a scam and the same scam happens with sports betting, but it's a bit more nuanced than that.
Trader A buys a 50,000 person email list.
Sends 25,000 an alert that XYZ is going through the roof
Sends 25,000 an alert that XYZ is going through the floor
If XYZ stays flat, he repeats the process a bit later.
Whichever side loses is eliminated.
He repeats the process with 12,500 on each side of the position (more because presumably more people will sign up for his "picks") and you keep going from there.
- ipaddr 5y agoPerhaps this made sense when you had to physically mail this. With each round he loses half. Wouldn't it be better to just send all 50,000? Some of the 25,000 who were sent the wrong pick might have misunderstood, did not read it the first time around, would purchase because of brand awareness. With the cost of delivery the same you would be foolish to overlook this.
- fighterpilot 5y agoUsually the scam is just a pure pump & dump with no sophistication: Trader A sends 50,000 an alert that small-cap XYZ is going through the roof, then XYZ really does go through the roof because a large subset of 50,000 people buy it at the same time.