Bitcoin Forum

"Pump and dump" (P&D) is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price.

http://dgnews.sduhsd.net/wp-content/uploads/2015/02/image-1.png

So how long before crypto P&D is made illegal?

Here's the current atmosphere.

http://s10.postimg.org/6dxz49njd/west1.jpg

Pumpers take notice!!!

By participating in a Pump n Dump you are going down one of two roads.

http://www.slate.com/content/dam/slate/archive/2011/05/1_123125_123073_2279751_2292779_110524_ex_californiaprison_tn.jpg.CROP.original-original.jpg

or

http://4.bp.blogspot.com/-QxkBGIho2lg/UO3MWW_XPeI/AAAAAAAAAd0/1M79hiRmD8w/s1600/a-lynch31-bw.jpg (http://4.bp.blogspot.com/-QxkBGIho2lg/UO3MWW_XPeI/AAAAAAAAAd0/1M79hiRmD8w/s1600/a-lynch31-bw.jpg) [NSFW]

mod note: edited out a NSFW image

Pump and dump spam

Now tell me good readers, does this sound familar? In fact it's happening RIGHT now, look at what VIRAL is doing.. Classic

Pump and dump stock scams are prevalent in spam, accounting for about 15% of spam e-mail messages. A survey of 75,000 unsolicited emails sent between January 2004 and July 2005 concluded that spammers could make an average return of 4.29% by using this method, while recipients who act on the spam message typically lose close to 5.5% of their investment within two days.[13] A study by Böhme and Holz[14] shows a similar effect. Stocks targeted by spam are almost always penny stocks, selling for less than $5 per share, not traded on major exchanges, are thinly traded, and are difficult or impossible to sell short. Spammers acquire stock before sending the messages, and sell the day the message is sent.[15]

Pump and dump differs from many other forms of spam (such as advance fee fraud emails and lottery scam messages) in that it does not require the recipient to contact the spammer to collect supposed "winnings," or to transfer money from supposed bank accounts. This makes tracking the source of pump and dump spam difficult, and has also given rise to "minimalist" spam consisting of a small untraceable image file containing a picture of a stock symbol.

Short and distort

A variant of the pump and dump scam, the "short and distort" works in the opposite manner. Instead of first buying the stock, and then artificially raising its price before selling, in a "short and distort" the scammer first short-sells the stock, and then artificially lowers the price, using the same techniques as the pump and dump but using criticism or negative predictions regarding the stock. The scammer then covers his short position when he buys back the stock at a lower price.


Now who does this remind you of? Anyone?

Currently, crypto is very much like Internet trading of penny stocks were in the 90s. Back then, many described it as the "Wild West" too, but the SEC showed them that there was a new sheriff in town. I suspect that the same type of thing is in store for crypto.

no one cares about this

this is a global thing and out of "the sec's" jurisdiction

its more of a thing for interpol

but even then it's like trying to find a needle in a haystack

everyone is using lbc wallets to tumble and scramble the fuck out of their transactions

this is money laundering on steroids

they dont stand a chance

i am against the pump and dump
 
but pumpers are gonna pump and dumpers are gonna dump

nothing can or will be done about this

this is the land of the PND

Perhaps you don't realize it, but most other countries have regulatory agencies similar to the SEC, so like it or not, P&Ders who live in most of the world will see that their days are numbered.

You aren't really naive enough to believe that, are you?

i hope soon

That won't stop it.  Penny stocks are overseen and regulated by the SEC but there are companies, yes real companies, that can be hired by a corporation to 'pump' its stock.  I don't know how exactly it all happens but I guess they have lawyers and know how to navigate the legal waters.  P&D is actually a lucrative money making 'business' if you can call it that.  

If you think pump and dumps will go away because there are regulations, think again.  It's been there since the time there were exchanges and markets.  And it won't ever go away.

Bitcoin markets are unregulated, so you can't make any behaviour illegal. With one, comes the other.

I'm just wondering what the SEC planning to do with decentralized exchanges :p? With decentralized and more or less anonymous exchanges those regulations going to be pretty much useless.

Because of the SEC, it doesn't happen nearly as much as it used to. It still happens though. They don't hire lawyers to navigate any legal waters though. They "entice" a market mover and hope not to get caught. In today's environment, it's a risky move.

Bro, most countries cant even handle their own economy, let alone crypto! they have no idea what it is.

Pump and Dump wont stop because we are talking about a chinese guy in middle of nowhere with a computer.. they are not registered companies, it could be anyone, anywhere... what they could do is regulate exchanges but not much more than that

If it is fraud as you say then it probably is illegal. But do you any an example of a fraudulent or misleading statement?

It's wish full thinking to think P & D will go away.  ::)

Jonathan LebedEdit
During the dot-com era, when stock-market fever was at its height and many people spent significant amounts of time on stock Internet message boards, a 15-year-old named Jonathan Lebed showed how easy it was to use the Internet to run a successful pump and dump. Lebed bought penny stocks and then promoted them on message boards, pointing at the price increase. When other investors bought the stock, Lebed sold his for a profit, leaving the other investors holding the bag. He came to the attention of the U.S. Securities and Exchange Commission (SEC), which filed a civil suit against him alleging security manipulation. Lebed settled the charges by paying a fraction of his total gains. He neither admitted nor denied wrongdoing, but promised not to manipulate securities in the future.[6]

Are you saying ltcifc is only 15 years old? ;D

Bro, most P&Ds that we see are done by those in the US and Western Europe. Yes, the Chinese P&D too, but the ones that they are behind usually occur on Chinese exchanges that most of crypto have never heard of and don't affect the prices that we see.

IMHO the main problem is people wanting to make a quick buck, not coin developers making false statements

Sometimes you get both working together.

 ::) from the pump n dump king.. Run don't walk from this one

that person is bum he is beg people buy his coin no pumper behave like this, this person have no friend to help him he is only by himself and he is just a poor person who has not even made 500 dollar this month, tell him to come here and show message on wallet with 200 btc he cannot do because he poor

Talking about pump&dump

https://i.imgur.com/Ic8zyC1.png?1

I have been saying the Laws are coming by *myself loudly going back years now as many of you should recall.
But.. I read your replies here so far guys and I gotta say I agree with most of you.
And you guys are talking about laws actually stopping Pump & Dump style fraud etc.
But wait !
Is that the point ?
Can we stop Murder ? Do we have laws for that ?
I think many of you missed the point..

And I agree with snail about decentralized exchanges we all know they are the future (we need) ..they should have been implemented already.
And I too agree, what is the SEC etc going to do about them ? Sounds like it would be hard for them to do much I think.

I wouldn't be against P&D antics etc but the problem is scamming deceitful douchebags took over the scene with that crap too early..
Think about it people the Stock Market around the world had time to mature etc before Penny stocks were being pushed like they were in the 90's etc.
We never let Altcoins get off the ground I think before it was swamped with dishonest scammy douches and their shenanigans.. see what I am saying ?
So it's not like I have thought I am 100% against pump & dumpers it's just a bad time and too many of them (too early)

is this the latest stats or youre sharing an old one??
WellKnownQuotes (https://wellknownquotes.com/)

If such laws are invented, it will be good for the industry. But it is so easy to circumvent them, that I have serious doubts, that they can be effective.
A lot of the pump and dump activity is hard to prove. Except for the most blatant and stupid schemes.

I think within 5 years crypto will be regulated, so now we have time for manipulative schemes like pump and dump.
I am not a whale, so I just lost money on this approach

I dont regulation can touch pump and dump. Its about market mechanism or supply and demand. Pump and dump is about market manipulation and its hard to prove market manipulation or price manipulation. Regulation should touch the project itself, if the project are scam, the team should put in jail