50 Shades Of Crypto Currency Chapter #1 : Pump & Dumps
Hey Steemians & Cryptopians,
Lately there have been many crypto projects that skyrocketed (pumped) out of nowhere that you may not have seen before or maybe your favorite project may have plummeted (dumped on) for no apparent reason.
When you join or just nose around a project,the best way to get information right from the project is to join their news letter or join a group they may have whether it be on Slack, Telegram, Discord or any other such communicating platforms out there.
Humans have FOMO (Fear Of Missing Out) so when a project skyrockets people sell off projects they have been holding onto, to try and get in on a project that is moving up, sometimes while doing this proper research isn’t done. Due to FOMO you constantly feel that if you're not quick enough you’ll miss out, but sometimes you can be the bag holder - the one that’s joined the project on the high, so that people are now dumping the project down on you, which may never go as high as when you got involved in it.
When you take a further look on some of these projects you can find unfinished dev work or maybe many of core developers might have moved on due to many reasons such as:
- No fundings to move on
- Bit of more than they could chew (bigger project than they thought or maybe outside their skill set)
- Work commitments (Most devs work also, these are mostly side projects - bigger projects with funding is where the full-time devs are mostly)
Also sometimes in various projects, even though a developer may leave the community there may be a community takeover, where someone in the community who has passion for the project and is willing to bring in new life to the project tries to accomplish as much as possible.
What's the difference between taking some cake and pumping and dumping?
When your taking some cake, you're taking back some or all what you have put into the project, but leaving the rest within the project, or you may get back into the project lower on in.
Where Pumping & Dumping is pushing the price up so you can dump your project units down on others so you can profit.
Ending this post, we’ll like to leave you with this thought provoking statement a wise man once said
Everyone that trades aren't they all Pump & Dumpers as when you see it went high you check the chart and wish you got in lower when it goes high when you misses the opportunity to sell you wished you set it up to sell
We would love to know you thoughts on this thought provoking statement? So do leave a comment!
Until next chapter - We look forward to sharing our knowledge with you!
Author: biglipsbudgetmama
It is true. It has happened to me more than once. Truth is patience and watching the price for months before buying will get you in at a better price rather than jumping in 9 out of 10 times.
I agree with your provoking statement. With the experience of the dot.com (I invested 1 dollar which went up to 17 dollars and came back to 1 dollar) I am thinking a lot about what is the right exit strategy? Especially with a BTC dominance scenario in mind that is not so easy and probably for some coins the answer might be never (only spend it when commonly accepted).
But I am convinced we will see a sell off a few times more before we have mass adoption. Just keep everything through that time? Or "dump" it early on?
One thing seems sure to me: What all the crypto investors think their portfolio is worth now only a few of them will be able to actually realize those profits.
There's a risk of confusing pump-and-dump which is really a form of fraud from legitimately investing in and selling something you believe in.
A scammer perpetrating a pump-and-dump go in knowing that they are only in it to raise the price and sell. Often the scammers choose projects that are otherwise dead (so that they can get in ultra-cheap). Scammers also advertise to the whole world about the investment trying to drum up others to drive up the price. Additionally, pump & dumpers are in it for the least amount of time possible. They won't want to be invested for more than a few days to a month.
Someone who is legit invests in a project because they see value in it. They believe it will go up even if they don't invest. They don't need to tell everyone about their investment (though they may choose to), and they may not even have a clear exit strategy for their investment. They may choose to hold on for years. When they do sell off the investment it's often because they no longer see as much value in the project or don't expect any more growth (or just need the money for a different purpose/project).
But there really is a clear difference in the motives of a pump & dumper and an investor.
thx for sharing
thanks for sharing @adsactly..
this is useful posting for many Steemians & Cryptopians....
keep steem on sir :)
Liked the post.
I try not to chase pumps at all. When it's pumping it's too late. But than again, so many times it's not. I was considering buying NEO at $7 for example, but didn't because it got pumped hard already, regretted it later but it's more of an exception than a rule.
I try to find good projects, buy in when it's low and just hold.
I think most people can identify themselves with that statement, it's only too true :D
Hey Steemians & Cryptocureency & all
Lately there are a lot of crypto projects that have skyrocketed (pumped) out of nowhere that you've probably never seen before or maybe your favorite projects may have dropped dramatically for no apparent reason. Until when will the crypto project skyrocket. Really amazing crypto project! Thank you friend. Has shared!
Nice post when any coin go down they will pump back with more than there value in 3-4 months
yes sir but i dont agree on pump when its value go up properly it will stable and also i see many of want to include in any project but they dont have some talent for this and they try some but not more to get right and leave it after
This Is Very Useful