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Author Topic: Pump and Dump  (Read 188 times)
wilburwilbur
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January 05, 2018, 03:43:42 AM
 #1

Is pump and dump illegal or not?
if not can you share a link of it ?

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January 05, 2018, 04:13:03 AM
 #2

Is pump and dump illegal or not?

any form of market manipulation is considered illegal in any country as far as i know. and pump and dump is officially a form of "fraud" which is inflating prices through false and misleading positive statements, so that the manipulator can dump what he bought at a higher price.

Quote
if not can you share a link of it ?

https://www.google.com/search?q=Is+it+legal+to+pump+and+dump

bitperson
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January 05, 2018, 06:32:42 AM
 #3

It's not possible to make a global blanket statement such as 'pump and dump is illegal'. One would need to know exactly what the OP means by 'pump and dump'. Laws differ between jurisdictions, so what is illegal in one country might be legal in another. Even if legislation has been passed against stock market manipulation, those laws might not apply to crypto currencies. Finally, it's unclear what definition of 'illegal' the OP is using - criminalised as in might land you in jail, or sanctionable by e.g. punitive tax?

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January 05, 2018, 07:13:12 AM
 #4

Is pump and dump illegal or not?
if not can you share a link of it ?
As far as bitcoin or crypto currency is concerned then pump and dump is common phenomenon. You could find these kind of practices across all the exchanges across the world that too on regular basis. Interestingly bitcoin has its spread across the globe thus it is difficult pump and dump in specific exchange. However this kind of practice also result in reverse way as well. That is if bitcoin price in specific exchange could trigger other exchanges to follow the same suit.
Same is true for the alt-crypto currencies.
wilburwilbur
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January 05, 2018, 09:34:47 AM
 #5

Is pump and dump illegal or not?

any form of market manipulation is considered illegal in any country as far as i know. and pump and dump is officially a form of "fraud" which is inflating prices through false and misleading positive statements, so that the manipulator can dump what he bought at a higher price.

Quote
if not can you share a link of it ?

https://www.google.com/search?q=Is+it+legal+to+pump+and+dump
okay okay let's say pump and dump is illegal. who will catch them? is there any consequence? what will happen to them if they were caught and said that they're part of the group that pumps and dumps?

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January 05, 2018, 10:03:28 AM
 #6

Is pump and dump illegal or not?

any form of market manipulation is considered illegal in any country as far as i know. and pump and dump is officially a form of "fraud" which is inflating prices through false and misleading positive statements, so that the manipulator can dump what he bought at a higher price.

Quote
if not can you share a link of it ?

https://www.google.com/search?q=Is+it+legal+to+pump+and+dump
okay okay let's say pump and dump is illegal. who will catch them? is there any consequence? what will happen to them if they were caught and said that they're part of the group that pumps and dumps?

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Johann Strauss
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January 05, 2018, 12:14:25 PM
 #7

Is pump and dump illegal or not?
if not can you share a link of it ?

If pump and dump comes from traders, it shouldn't be illegal. But if it comes from exchanges themselves, then it should be prohibited. Regular exchanges are punished for this sort of activity, but they still do it anyway. With crypto, it is a wild West.
GraciousBanshee47
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January 05, 2018, 12:16:50 PM
 #8

It's difficult to determine if certain pump and dump in prices were actually orchestrated, unless of course an insider admits it. So bottom line is, yes, it is against the law, but it's difficult to detect especially for mid to large market caps.
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January 17, 2018, 01:05:14 AM
 #9

Not illegal but don't do it.
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January 17, 2018, 04:56:05 AM
 #10

If pump and dump comes from traders, it shouldn't be illegal....
... what will happen to them if they were caught and said that they're part of the group that pumps and dumps?
It's difficult to determine if certain pump and dump in prices were actually orchestrated...

It is clear that many people don't know what a pump-and-dump scam is. That is unfortunate, because their ignorance may lead them to join a pump-and-dump group, not knowing that they are the intended victims.

Pump-and-dump is not a rise in price followed by a fall in price. That is the result of a pump-and-dump.

If I quoted you, please read this:

"Pump and dump" (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements...

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Johann Strauss
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January 24, 2018, 05:09:07 PM
 #11

If pump and dump comes from traders, it shouldn't be illegal....
... what will happen to them if they were caught and said that they're part of the group that pumps and dumps?
It's difficult to determine if certain pump and dump in prices were actually orchestrated...

It is clear that many people don't know what a pump-and-dump scam is. That is unfortunate, because their ignorance may lead them to join a pump-and-dump group, not knowing that they are the intended victims.

Pump-and-dump is not a rise in price followed by a fall in price. That is the result of a pump-and-dump.

If I quoted you, please read this:

"Pump and dump" (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements...

But Bitcoin is not a stock nor a commodity. It may be illegal at regular exchanges like CBOE or Nasdaq, but how is that illegal at Bitcoin ones? We don't even know what these exchanges are doing themselves, and whether they are not doing things like front-running the orders of their clients or similar stuff. Bitfinex is rumored to be printing virtual dollars out of thin air just like that. I don't know how legal that could possibly be. Though I agree that P&D groups are mostly scams, but I still don't get what's wrong with a tightly-knit group of people to exert influence on prices by massive buys or sells.
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May 15, 2018, 03:57:04 AM
 #12

But Bitcoin is not a stock nor a commodity. It may be illegal at regular exchanges like CBOE or Nasdaq, but how is that illegal at Bitcoin ones? We don't even know what these exchanges are doing themselves, and whether they are not doing things like front-running the orders of their clients or similar stuff. Bitfinex is rumored to be printing virtual dollars out of thin air just like that. I don't know how legal that could possibly be. Though I agree that P&D groups are mostly scams, but I still don't get what's wrong with a tightly-knit group of people to exert influence on prices by massive buys or sells.

I'm sorry if I misinterpreted your statement. I agree that P&D in this case is not necessarily illegal because cryptocurrencies are not regulated securities (at least in the U.S.).

However, I am not talking about a tightly-knit group of people. The intended victims of a P&D group are the members themselves.

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May 15, 2018, 04:46:02 AM
 #13

Pump and dump for me is not legal, as I haven't seen yet any law that says it is, or am I just commenting blindly? At best it is unethical IMO. To pump and dump is to create a temporary hype with a lasting mark especially those who already came in late in the wagon. I know a few friends who tried riding the P and D and ended up with their monies half of the original value.
There are however measures being put in place to address this pump and dump. Some icos are even addressing this problem already.
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May 15, 2018, 11:41:31 AM
 #14

the pump and dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once the stock price has risen following the surge in interest as a result of the endorsement. ... Pump and dump scams tend to only work on small and micro-cap stocks ...
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May 15, 2018, 03:59:44 PM
 #15

Pump and dump for me is not legal, as I haven't seen yet any law that says it is, or am I just commenting blindly? At best it is unethical IMO.

Pump and dump is illegal, but only in its original context, where it's usually applied to the stock market. It seems to be free for all for cryptocurrencies at the moment (I haven't seen any ICO being shut down solely because of pump and dump), but I won't be surprised if regulators made crypto exchanges implement rules to prevent them, similar to penny stock regulations.

Some icos are even addressing this problem already.

Haven't heard of this yet. How are they addressing this problem?

CryptoSheikh
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May 15, 2018, 07:58:13 PM
 #16

Market manipulation is illegal generally. You can find legal sources about it easily. But crypro isn't fully regulated right now, so it's really hard to punish those group owners legally
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May 15, 2018, 09:10:22 PM
 #17

Is pump and dump illegal or not?
if not can you share a link of it ?

The USA SEC ruled that P&Ds are illegal and are offering bounties to report the members of P&Ds. The bounty is applicable if they are convicted. So yes, P&Ds are illegal in the USA.
Knowing the EU and UK regulations, P&Ds even in cryptocurrencies would be illegal, even if not regulated.
Danny Uchay
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May 15, 2018, 09:11:36 PM
 #18

I feel pump & dump affects the whole cryptocurrency industry as it scares off potential investors.
wvizmanos
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May 15, 2018, 09:37:00 PM
 #19


[/quote]

Haven't heard of this yet. How are they addressing this problem?
[/quote]

What I meant was some startup exchanges into icos have this solution as part of their product and offering this seem to attract clients, me included.
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May 16, 2018, 09:46:06 AM
 #20

Pump and Dump is not illegal, only the person who is not researching about cryptocurrency are their victim. The person who don't have time to search about whitepaper and the project of each coin or token.
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