CFTC instructing to duck pump-and-dump schemes

[Jeffery Musk]

The U.S derivatives regulator (Commodities Future Trading Commission) issued a warning against potential investors on Thursday regarding cryptocurrency “pumps-and-dumps” scams. The main intention of such schemes is to force investors by inflating the price of digital tokens through bogus information.
Know More: https://coinpedia.org/news/regulations/cftc-instructing-duck-pump-dump-schemes/

[shulio]

I think this is the first step as the government try to regulate the crypto market with some rules. They will try to put some rules in order to prevent investors to lose money.

[jseverson]

Oh, so they're basically just handing out instructions? Here they are, for users who don't want to bother clicking:

CFTC warns investors

Never buy digital coins or tokens especially when it advertised on social media websites.
Avoid the cryptocurrency related ads which promise instant money by investing in certain digital coins or tokens.
Don’t be the part in pump-and-dump trades.
If someone requests you there is no risk involved in the system, never trust them and don’t invest in it

I thought they'd be penalizing the masterminds, but I guess that wouldn't be very easy to prove. Another one to watch out for are social media pump and dump groups. It should be obvious in the name itself that they cannot be trusted, but people who just want a quick profit are likely to get burned if they get involved.

Bolded part also provides insight as to why crypto in general is starting to get in the crosshairs of ad companies.

[An0nyMoose]

It's good advice from the CFTC.

A lot of people just invest without doing any research so the suggestions from the CFTC can be very helpful. People should follow these suggestions.