This article is complete bullshit.<p>I'm a member of this group, only because I was added without my consent, which is probably the case for most of the users in the group.<p>Just for giggles, I watched them do a pump and dump one time, and they basically sold the pump hard, managed to get about 10 Bitcoin in some tiny market cap coin, and then one guy sold all the way back down and left the "members" of the group holding the bag.<p>This group is a scam, but not in the way that this article says.<p>Also, telegram isn't encrypted as far as I know.
Sounds more like whale/s telling people to raise the price of a coin then dumping on them, rather than some kind of a 'collaborative' pump.<p>The article is talking about minutes after all so there's likely no outside buyers fast enough to react. Essentially most 'members of the community' will lose, but some lucky ones will be fast enough to dump before the whale for at least some cash.
I am on Telegram and none of these channels really have any bearing on pumping a coin. There might be some movement on smaller coins but these channels rarely play a major part.<p>Typically what happens, is a whale starts buying a particular currency and magically you start to see news articles appear on major and smaller niche crypto blogs. Then the reddit posts start appearing causing a even more hurried frenzy to buy the coin. It is very similar to how traditional stocks are pumped.<p>On a side note, I am noticing a trend from Forbes, Business Insider, and CBS News that are very hostile to the crypto space. They will literally grasp at any resemblance of shadyness to write a negative article.
Oh, this brings back memories. Back in 2013/2014 when bitcoin first touched 1k, I got to know some of these groups.<p>First, there are positive campaigns run for multiple coins through YT channels (some really respected ones), reddit posts, bitcointalk forum etc. Once enough frenzy is generated a pump date is announced but not the coin name. The coin name depends on various factors like -how many coins these guys have accumulated, which coin is generating some vibe outside their efforts, how much of the supply has been mined etc.<p>Once the time arrives, the coin name is announced in the chat group, twitter etc. And the coin price flies on a particular exchange. It seems obvious that the price should tank. But it doesn't. Because there are a lot of things going on here:<p>a. In the cryptocurrency world, everyone has a constant FOMO fever. So, if they see a coin flying they buy irrespective.<p>b. Then there is lot of belief in technical analysis too. So, if there is some MA crossover, RSI crossever etc happens then people buy irrespective.<p>c. There are a lot of "arbitragers" who have automated setups to try and catch up the difference. So they sell at the high price exchange and buy at low price exchange. But, the imperfect market ensures that they actually end up pulling the price at the lower exchange. The price does drop but it doesn't go to the previous low price.<p>d. Lastly and most importantly the orderbook gets messed up and price is re-framed.<p>These coins are thinly traded. So, there is some form of equilibrium at the low price - there are both buyers and sellers at this price. Once the pump is over the price has inched higher. The bag holders have bought the coins at a higher price so they wont sell for a loss. Then the FOMO, TA and arbs come in to create an equilibrium market at the higher prices.<p>Things don't end there. The pump and dump schemers also are unable to get out at the high so, they keep creating positive buzz for the coins. In most cases, the same coin gets pumped up by many (or maybe same) groups multiple times.<p>Look at the chart for the Magi Coin mentioned in the article:<p><a href="https://coinmarketcap.com/currencies/magi/#charts" rel="nofollow">https://coinmarketcap.com/currencies/magi/#charts</a><p>It is going higher and higher.<p>If you look at the market on bittrex, which btw is the go to market for these schemes:<p><a href="https://bittrex.com/Market/Index?MarketName=BTC-XMG" rel="nofollow">https://bittrex.com/Market/Index?MarketName=BTC-XMG</a><p>you will find multiple price swings, which are actually prices being pumped.<p>Does it work for big coins? Yes it does. But, those are much more nuanced than telling people to pump a coin. There it takes form of some announcement - mostly it is a vaporware feature which remains WIP for a long time or some collaboration.
you had me at...<p><i>"Russian messaging app Telegram is heavily encrypted and,..."</i><p>enough of the mccarthyism.<p>anyway, time to log off of my freedom infused american hacker news app and go work for a bit in my almost fascist italian code editor on my communist chinese computer
These days, iN KOREA, it is crazy!!
Several days, it shows going down tread, but in las weekend it goes up and upper!
you guys, I want to ask you, how long does this situation go?