Pumping and unloading in cryptocurrencies: cases, measures and warnings

in #crytocurrency7 years ago (edited)

Cryptocurrency in cases

The pumping or unloading, an old scheme and this is to raise in a very fast way the value of an asset that does not have to later sell it and have benefits of the price increase, Not only is it illegal according to the laws of values, but it is also popular in the technology of the world that has to do with cryptocurrencies

How does it work?

Many will wonder how this system works?, we can start by saying that it is a pumping curve that simultaneously downloads the price of a worthless asset, normally a penny action with a low inflation that is found in the market is artificially inflated by a It would be of planned commercializations. that is, false and misleading statements, a large number of messages in any type of social network are used to spread the word about what is in fact, an urgent purchase that investors do not want to miss, that is, the pump to make a clear repaldo of these, the price actively without value aunmenta of a progressive way due to the already mentioned well planned bomb. at the moment that the investors review the information and receive it on the useless asset they see that its price increases in a very fast way. in this, investors are able to buy more shares. This is when the people who are in a scheme or a pump and discharge system will sell or discharge the overvalued asset shares. These people benefit from selling the asset at or near its peak, many times more than at the price at which they bought it. when they begin to sell their shares the same overvalued asset, the price is deplomated and corrected at a more stable valuation.

Internet and pumping download

Before the internet was an invention it was difficult to organize bombs and downloads. people had to do them in person, by phone, or by mail, they were often organized by Noiler Rooms, they were outgoing call centers that was known to use dissonant sales tactics ie fraud, with the promotion of penny stocks and so get net profits with the creation of the intenet it became easier to carry out these operations of pump and discharge, now people communicate through char through tableware applications to coordinate a pumping or unloading