Crypto Pump and Dump laws coming soon, or Pump em while you still can

[JohnnyBTCSeed]

"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.



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

Here's the current atmosphere.



Pumpers take notice!!!

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



or

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

mod note: edited out a NSFW image

[JohnnyBTCSeed]

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.

[JohnnyBTCSeed]

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?

[sdmathis]

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.

[CryptoJerk]

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

[sdmathis]

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.

[TheMystic]

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

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

[kryptologist]

i hope soon

[tokeweed]

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.

[monsterer]

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

[Snail2]

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.

[sdmathis]

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.

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.

[hcf27]

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.

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

[adhitthana]

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

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

[AltCoinBuddah]

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

[JohnnyBTCSeed]

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]

I have one thing to say: buy as much as you can. IFC will go much higher than now. Trust me.

[tokeweed]

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]

I have one thing to say: buy as much as you can. IFC will go much higher than now. Trust me.

Are you saying ltcifc is only 15 years old?

[sdmathis]

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.

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

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.

[adhitthana]

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

[stonehedge]

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

Sometimes you get both working together.