5 ms·

Memecoins are pump and dump schemes. I guess it’ll take more time for the world to know, till then it’s going to wreak havoc

allenrb 2y ago
Sometimes things just happen. I mean, nobody could have foreseen this!
- onemoresoop 2y ago
  Haha, except the people running it..
  - Agentus 2y ago
    and the economic monetary theorists.
cmdtab 2y ago
In my experience, most people participating are aware of it. The clueless people you see are minority. It’s not any different from lottery that people know they won’t win but still put money into except with better optics (skill vs luck)
- tyleo 2y ago
  Interesting, I have the opposite experience: most folks I know who gamble think they will win. I’m pretty sure some even think they are winning while actively losing. Edit: I looked for more information online and this resonates, those who don’t know if they will win at least think it is their only shot at a better life.
tchock23 2y ago
I miss the days when they had to at least write a ‘white paper’ to try and sell their pump and dump scheme. Now it’s just low effort grifting, yet it somehow seems to keep working.
- paulgb 2y ago
  I’m kind of glad that its reached its logical conclusion. It’s always been pure speculation, at least now they’ve dropped the pretense.
- wslh 2y ago
  The secret sauce is how to be in the front, being able to scam a president is huge. I am not saying that Milei is not responsible for that but just a talk with his inner circle will tell him to not proceed, he is happy-tweeting. I think in this case the scammers themselves went too far, one thing is to try the pump-and-dump in dozens of Telegram accounts and another is to have a president in front.
  - verdverm 2y ago
    The ppresident of US did it, we should not be surprised seeing other presidents trying it
  - onemoresoop 2y ago
    I believe Mr Milei got his lion's share and so he is going to let it slide.
ericjmorey 2y ago
How is Bitcoin and Ethereum not a pump and dump scheme?
- hrunt 2y ago
  Bitcoin and Ethereum don't have "insiders", and the ownership pool is sizeable and diverse enough to make pump and dump difficult to perform with them. It's important to recognize that pump-and-dump coins (scams), memecoins, and (for lack of a better term) cryptocurrencies have separate characteristics. Pump-and-dump coins have insiders that control the majority of the coins and know when to exit. They are "in" on the game, and they specifically manipulate others to exit with a windfall with no expectation of the coin to last past the exit. TRUMP is an example of a pump-and-dump coin. Memecoins have enough diverse holders that there's nobody with enough coins for a dump to kill it completely. Memecoins are volatile because they still respond to hype and the people involved acknowledge their questionable value, but there's not a person or group of people that know what's going to happen to the coin. DOGE is an example of a memecoin. The more classic, well-established cryptocurrencies are like memecoins where the market sees real value in them or their future. Not only do they have a large and diverse pool of holders, but they serve general use cases that the holders perceive has having value (note, not the same as the holders perceiving the coin has value, but that the use-cases for the coin drive its value). BTC is an example of a cryptocurrency. BTC and ETH may still have as much inherent value as pump-and-dump coins, but if they take a ride to zero, it will happen differently than a pump-and-dump.
  - onemoresoop 2y ago
    I agree with you that ETH and BTC are also based on speculation but they differ from Memecoins in their characteristics. Memecoins have no chance of recovering after a very large rag-pull but ETH and BTC have been around for a while to make a ragpull harder to pull off and sometimes not even that advantageous to the rug pullers in the sense "Had they waited longer they'd probably draw more profit in"

allenrb 2y ago

Sometimes things just happen. I mean, nobody could have foreseen this!

onemoresoop 2y ago
Haha, except the people running it..
- Agentus 2y ago
  and the economic monetary theorists.

cmdtab 2y ago

In my experience, most people participating are aware of it. The clueless people you see are minority. It’s not any different from lottery that people know they won’t win but still put money into except with better optics (skill vs luck)

tyleo 2y ago
Interesting, I have the opposite experience: most folks I know who gamble think they will win. I’m pretty sure some even think they are winning while actively losing. Edit: I looked for more information online and this resonates, those who don’t know if they will win at least think it is their only shot at a better life.

tchock23 2y ago

I miss the days when they had to at least write a ‘white paper’ to try and sell their pump and dump scheme. Now it’s just low effort grifting, yet it somehow seems to keep working.

paulgb 2y ago
I’m kind of glad that its reached its logical conclusion. It’s always been pure speculation, at least now they’ve dropped the pretense.
wslh 2y ago
The secret sauce is how to be in the front, being able to scam a president is huge. I am not saying that Milei is not responsible for that but just a talk with his inner circle will tell him to not proceed, he is happy-tweeting. I think in this case the scammers themselves went too far, one thing is to try the pump-and-dump in dozens of Telegram accounts and another is to have a president in front.
- verdverm 2y ago
  The ppresident of US did it, we should not be surprised seeing other presidents trying it
- onemoresoop 2y ago
  I believe Mr Milei got his lion's share and so he is going to let it slide.

ericjmorey 2y ago

How is Bitcoin and Ethereum not a pump and dump scheme?

hrunt 2y ago
Bitcoin and Ethereum don't have "insiders", and the ownership pool is sizeable and diverse enough to make pump and dump difficult to perform with them. It's important to recognize that pump-and-dump coins (scams), memecoins, and (for lack of a better term) cryptocurrencies have separate characteristics. Pump-and-dump coins have insiders that control the majority of the coins and know when to exit. They are "in" on the game, and they specifically manipulate others to exit with a windfall with no expectation of the coin to last past the exit. TRUMP is an example of a pump-and-dump coin. Memecoins have enough diverse holders that there's nobody with enough coins for a dump to kill it completely. Memecoins are volatile because they still respond to hype and the people involved acknowledge their questionable value, but there's not a person or group of people that know what's going to happen to the coin. DOGE is an example of a memecoin. The more classic, well-established cryptocurrencies are like memecoins where the market sees real value in them or their future. Not only do they have a large and diverse pool of holders, but they serve general use cases that the holders perceive has having value (note, not the same as the holders perceiving the coin has value, but that the use-cases for the coin drive its value). BTC is an example of a cryptocurrency. BTC and ETH may still have as much inherent value as pump-and-dump coins, but if they take a ride to zero, it will happen differently than a pump-and-dump.
- onemoresoop 2y ago
  I agree with you that ETH and BTC are also based on speculation but they differ from Memecoins in their characteristics. Memecoins have no chance of recovering after a very large rag-pull but ETH and BTC have been around for a while to make a ragpull harder to pull off and sometimes not even that advantageous to the rug pullers in the sense "Had they waited longer they'd probably draw more profit in"