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December 25, 2013, 10:55:15 AM |
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It's a new market and sharks will be everywhere. I don't see the point?
Only give credence to established exchanges and hope for the best. We're all playing with a bit of fire here...
Also, that article has the definition of pump and dump incorrect. What they're describing is arbitrage; which is essentially exploiting the valued differences between markets for profit. This is natural and can't be controlled per se.
Pump and dump is when large(r) volumes of a certain currency pairing are bought to inflate the price (this is known as bulling the market), then once the general public catches on and rides the price up, those that initiated the pump start to sell. Once the volume [or interest] reaches maximum sustainability for sales the price starts to drop and it becomes a bear market. It happens all of the time on all of the exchanges to just about every pairing. There's legitimate reasons behind some scenarios, and sometimes it's just the way things work out (supply/demand would be the most natural reason).
After long enough people will catch on to who the sharks are. This is like warning that you may die in a car crash tomorrow. Minimize your risk by playing it as safe as you possibly can. Do a little research prior to getting involved with something. If you did all that you can, it wasn't meant to be and perhaps you should stay out of the game.
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