What's the mechanism behind pumping? Profiting in both BTC & altcoin possible?

[TheGreatPython]

Let me narrow down this discussion with respect to Elon Musk and dogecoin for easy understanding purposes.

Dogecoin was trading around 30 satoshi few months back and we assume Elon Musk started his pumping with ~100 BTC.

Basically my question is, did they book profits for the dogecoins they bought under 50 satoshi when they were pumping above 100 satoshi? Or simply hoarding all the dogecoins into stash for profit booking all at once?

If they gather all buying means they they will surely run out of BTCs to keep buying after some point of time.

At the same time, if they keep booking profits time to time then they can take dogecoins to any level like even one dogecoin may value 0.1BTC also (because they do have 100 or more BTC in reserve to keep pumping).

Even I am into trading for years, I could not imagine how manipulation of such coin will work.

Any idea on what behind the screens going on?

[Husires]

Elon Musk is not a speculator, and if he decides to speculate, he can manipulate many stocks and make profits higher than what Doge/BTC could achieve.
All the tweets about Dogecoin meme are jokes to test the strength of the currency and were used by speculators to create a bubble in the price of the currency, that bubble will soon burst, and these investors are the ones who will be rich.

[el kaka22]

If a pumping is happening in an organic way then you may get chances to baghold both BTC and altcoins. I guess Elon Musk must be doing that right now, he is not simply pumping but he calls new investors through social media which means he tries to make up his pumping somewhat organic.

An organic pumping will not have big differences from natural bull market.

What is pumping? One or few whales manipulates.
Bull market? Masses participate.

It seems, right now, Elon Musk is trying to make up dogecoin's pump as a natural bull market. If he is able to invite more investors then he can sell those dogecoins that has been bought for cheaper prices. This way, he may profit both in dogecoins and bitcoins.

But, keep attracting new investors will make your BTC holding weaker which may end up in only altcoin stash.

[GreatArkansas]

Very a lot of reasons behind these pumps.
For me, the biggest ones are the institutions that are accumulating, especially since last year. There are a lot of them, and we can't disregard the retail investors. Especially the Decentralized Finance (DeFi) things explode.
It's just sad that those newcomers in crypto will their first cryptocurrency is Dogecoin.

[jrrsparkles]

No one is going to spend their profits without any benefits for them but bumping and dumping may not give you any guaranteed returns so it all depends on how much they can influence the price of the coins, on the example you stated Elon musk is popular so he knows that he can bump the price for sure that is why he took the risk.

[suryogandul]

Elon Musk is not a speculator, and if he decides to speculate, he can manipulate many stocks and make profits higher than what Doge/BTC could achieve.
All the tweets about Dogecoin meme are jokes to test the strength of the currency and were used by speculators to create a bubble in the price of the currency, that bubble will soon burst, and these investors are the ones who will be rich.

yes that's right, elon musk can be said to be just an intermediary for the increase in the price of Dogecoin. what really happened is that investors played a role in the doge's soaring. So I think that Elon Musk is just an influencer but does not intend to speculate on doge, only investors who speculate in large numbers. so that the profits between Elon Musk and investors can easily come through doge.

[dezoel]

I think that Elon Musk is just an influencer but does not intend to speculate on doge, only investors who speculate in large numbers. so that the profits between Elon Musk and investors can easily come through doge.

Yeah, that is the reason the recent dogecoin's pump is looking like a real one in my eyes. Even dogecoin increased rapidly, it showed healthy volume on every day and on every session which is something we cannot find with most other pumping. Elon Musk is not just alone to pump dogecoins, it seems.

It's just sad that those newcomers in crypto will their first cryptocurrency is Dogecoin.

I do not find anything annoying in that. Because since 2014/2015, I am seeing dogecoin has been playing a big role in faucets and gambling. So, it deserves a place for being a first crypto for all new comers.

If they gather all buying means they they will surely run out of BTCs to keep buying after some point of time.

Elon Musk is not alone; he invited lots of investors through twitter hence there are plenty of chances for him to profit in both BTC and in dogecoins. If it is true then we can see dogecoins to be testing 10k satoshi in coming months.

[Theb]

You are just basically talking about the influence of their capital but they can do that without any kind of hype being thrown around the market but if they did both with capital and hype they can honestly pump dogecoin to a higher level. Pumping groups works the same thing as well they hype up a cryptocurrency after they have bought their shares on a lowest value they can get before announcing anything in their channel or group.

[OcTradism]

Bitcoin, altcoin, fiat and at the end you will have 3 choices, Bitcoin, stable coins and fiats.

If you don't complete your works of investments or tradings in stable coins or fiats, Bitcoin will be the best. It will the strongest cryptocurrency in bear market and it is the first one to rise in bull market.

In 2021 market, you will have to be flexible, wise, and lucky to maximize your profit in BTC and altcoins if you want to do it in short time and in many rounds of capital usages. Diversification for your portfolio: one part for Bitcoin and stable coin, and another part for altcoins. Don't mix two parts.

[death69]

You misunderstand the concept of pumping a coin. First they have to collect coin with cheap price. Then, they will create FOMO with news or important announcement (they can use money to buy news or create mislead information). Then, it is apparent they will sell their coin at the top

It is obvious that Elon does not spend an immense amount of money to pump Doge. He used his influential speech to make people believe that Dogecoin is more valuable than any other assets and perhaps they can earn good return by investing their money in it

Result: he successfully make dogecoin becomes the one of the most largest market cap cryptocurrency with the peak of 0.75$.

[taufik123]

Every time Elon Musk makes a good comment about DOGE on his twitter, DOGE will continue to be pumped, but when Elons makes a bad comment, DOGE will go down.
In the case of DOGE, Elon's words are very influential, this is Fundamenta, there will be a flash pump and a flash dump when you comment.

Elon doesn't need FUD or Good News, just needs twitter to make Crypto rock.

For some of the mechanisms for increasing cryptocurrency, especially bitcon, there are many investors who enter from institutions and several other large companies. Crypto is very popular and is trending nowadays.

[Gozie51]

For altcoins, it takes the CEO or someone important in the cryptocurrency space to make supporting statement and comment about the project and that's all. Dogecoin is a good example.

No one is going to spend their profits without any benefits for them but bumping and dumping may not give you any guaranteed returns so it all depends on how much they can influence the price of the coins, on the example you stated Elon musk is popular so he knows that he can bump the price for sure that is why he took the risk.

The pump of dogecoin actually started by Elon musk and that was really pumping when he tweet but at the moment I think doge coin might really wake up from this era and do a surprise, we should remember that it is a community project and the community has a huge decision on a coin they have sympathy and support for.

[Ryker1]

Well, perhaps it's a combined mechanism, from a community that dogecoin has to the pump and dump group and the last one is dogecoin have an indorser that very influencer that was working together in begun pumping the price. But now, we saw that this coin was suddenly dumped without any valid reason that I saw. In my mind perhaps that was a whale trying again to manipulate the doge price aside from Elon Musk that keeps giving dogecoin a good shot toward it. Influencers were contributed a lot to why a coin will be pumped too much just because of them not how the important usage on it.

[jossiel]

He might be using his own BTC and cash to pump Dogecoin while he encourages everybody to pump it. But his strategy is to look for the help of many new and old investors in the crypto market and have it pump to the probable price that he's going to be satisfied with.

He'll tell them when to buy but he'll never tell when to sell.

It's just sad that those newcomers in crypto will their first cryptocurrency is Dogecoin.

That's the sad part and they will reason it like this, "It is because Elon says so."

[danherbias07]

He's hardcore fans are joining in. It cannot be just that 100 Bitcoin or more that would pump the price of Dogecoin.
Then, there's his circle of investors who are also greedy for money. No doubt they will join in if their master says so.
Just a whisper that it would gain more value if demands will come in and they will all jump in without hesitation.

For small buyers that follows him, no way in hell that they would just buy 1 doge. 100-500 could be the minimum and we can't even calculate how many people will purchase the same amount or higher.

[Wexnident]

Very a lot of reasons behind these pumps.
For me, the biggest ones are the institutions that are accumulating, especially since last year. There are a lot of them, and we can't disregard the retail investors. Especially the Decentralized Finance (DeFi) things explode.
It's just sad that those newcomers in crypto will their first cryptocurrency is Dogecoin.

Unfortunate indeed, newbies would invest in Doge for the reason of it being influenced by someone like Elon, and not because of the innate qualities of the coin itself. It's like the coin lost its entire reason, and the only thing keeping it up would be the influence of Elon himself (not saying that it is true, but this is what newbie investors would base on if they're going to invest).

As for OP's question, well it's really just a lot of people joining in on the Elon hype. It was shown to have quite a huge effect after all, so even those without any knowledge would at least know that Elon's influence onf the market is pretty good (at least on Doge's side). There's still a lot of factors involved if I do say so, but his influence is a major factor, but that doesn't mean that he's the only one in the market.

[sheenshane]

Any idea on what behind the screens going on?

IMO, it’s not the manipulation Elon Musk did but we should also recognize the effort of Dogecoin’s team to convince Elon Musk to Promote the coin.

We should know the idea that most of the products we have today, we were influenced by the people we trust, admire and idolize and buy whatever that product is. And they are being paid for it.

Dogecoin’s team on the other hand was able to convince the richest man in the world to promote their coin and get more adoration they deserve and it worked.  I don’t think this has to be pointed to Elon Musk but we have to congratulate the good work of the team behind the meme coin.  They are the true players who nailed it.  Not Elon Musk as he could earn anywhere and anytime using his influence.  Just imagine him being able to sell thousands of caps because of the boring company.  That’s how he works naturally.

[jrrsparkles]

No one is going to spend their profits without any benefits for them but bumping and dumping may not give you any guaranteed returns so it all depends on how much they can influence the price of the coins, on the example you stated Elon musk is popular so he knows that he can bump the price for sure that is why he took the risk.

The pump of dogecoin actually started by Elon musk and that was really pumping when he tweet but at the moment I think doge coin might really wake up from this era and do a surprise, we should remember that it is a community project and the community has a huge decision on a coin they have sympathy and support for.

Doge is really a good community supported coin but there is no doubt in it but very few addresses hold more than 60% of Doge supply is scary which made it to be highly manipulative and since the arrival of Elon Musk then Doge really became a joke coin so anyone who wants to invest on Doge will be having less confidence now compared to last year even though the price increased by huge level.

[darewaller]

it's really just a lot of people joining in on the Elon hype. It was shown to have quite a huge effect after all, so even those without any knowledge would at least know that Elon's influence onf the market is pretty good (at least on Doge's side). There's still a lot of factors involved if I do say so, but his influence is a major factor, but that doesn't mean that he's the only one in the market.

As lot of other people's are following what whales are doing, then probably it will be possible to get profits both in bitcoin and altcoins. Because, there is a big differences between individually pumping and bumping in group by inviting new investors on board. If we take Elon Musk's twitter part, then I guess profiting in BTC might have become possible.

As some people already mentioned above, the recent dogecoin's pumping has become as a natural one as a lot of people are participating into it. When a coin is "naturally" increasing then profiting in both BTC and on that coin will be easily possible.

[Insanerman]

Any idea on what behind the screens going on?

If you would talk about dogecoin, then it is only driven by the hype. Having an unlimited supply cannot value as huge like that. If you would see the current RSI pattern and the Price. it forms a hidden bearish divergence as it was overbought from the January pump at RSI=96 and last weeks' pump is RSI=85.95 while its price were increasing. Hence, I think it would never really reach 1USD with its weak price action. What really drives it is the social media people that roots for it because they didn't knew any fundamentals of it but rather want to make profit out of it. Nonetheless, Doge remains a community driven coin. Once the whales took out their profit and the hype gets weaker, expect it to have a drastic downtrend./

Profiting on both BTC and Alts is possible if and only if the Bitcoin.D and Alt.D is in the same trend.