What is PesetaCoin?

From the looks of it, it's a currency option focused on Latin America. It offers little to no differntiation at all to Bitcoin, Litecoin, or any other currency-centric coin that I can see, other than the fact that it has low overall volume, is cheap, and thus, is open for market manipulation. So, this turns into "another day, another pump and dump post on Steemit".

Instead of just railing against PTC, because it's not overtly terrible, it's just not inherently useful, let's take a moment to discuss how pump and dumps work. It's pretty simple, for the most part, but it's broken down into a few parts.

Step 1: Pre-positioning

100% of all pumps you read about, no matter where they are mentioned, have been pre-positioned by the person or persons ready to pump the coin, this is a key element to every pump and dump, and you can trace pre-positioning in every single low-volume, penny/sub-penny cryptocurrency, every single time it's pumped.

In the example above, the positions were stacked around 11:30am, at about 430 satoshi. Not too bad, not too expensive, and it drove the price up a bit, then the dust settles... before the next step.

Step 2: The Pump

I left the cursor at 11:30a, so you can see the difference of the pre-position to the inflation caused by the pump. This isn't to say that the pre-position was done only the one time it was highlighted. There could have easily been stacking done days in advance leading up to the pump itself. In a low volume coin, it's hard to get a stack of it in a single trade, and to do it without signaling a volume bump or price increase, it's even harder.

Regardless, you can see in the chart where the first phase of the pump happens in the three-step green candles starting at 16:00. This is where the early buyers and the initial "public pumpers" storm into a coin. These are the guys that get screwed the worst, because the pumpers themselves will typically move on to Step 3 right after the first run, or the third.

Step 4: The Pre-position Dump

This orange highlight is when the pre-position and the early public pumpers will more than likely leave. The volume amount tapering down from 750 sats is indicative of a large sell-off, obviously - but it's nowhere near the volume of buys in the green runs prior, leaving a lot of people holding longer than they should, and being stuck at (in this case) 100-200 sats down immediately. That money is now in the hands of whoever orchestrated the pump.

Everything after Step 4 is basically powered by CRUD (Certainty Retained Under Dillusion). These people either believe the bullshit they were fed in whatever P&D Group they heard about the coin, or they're spreading CRUD to try to get people re-pump the coin so they can get out from under it, sticking someone else with the sack of shit coin.

Step 5 Sadness and HODLors.

Every dollar that's put into P&Ds leaves someone holding the bag. It's a scheme to take advantage of people who know little to nothing about trading. Operating under the dilusion that there's "quick money" in cryptocurrency, and easy profits just waiting to make you a "Lambo millionaire". It's true, there's ways to make shipping containers of currency in cryptos, but the path to real money isn't in "getting in early on a P&D" or letting FOMO run rampant and drive you to try to "hop in on the second wave" of a P&D coin.

The only thing you're left with is a shit coin and sadness.

I've tested the waters with a P&D recently, SYNX, and it was just pathetic. The CRUD HODL people were fed such a line of horseshit that they rode it down from 25000sats to 5000sats and are still trying to get it to "recover"... the coin is complete trash, with no industry insight or future - so the inflation from CRUD on SYNX is still strong today, and it's been nearly a week.

Pump and dumps won't stop anytime soon. When there's money to be had, ankles will be grabbed, and people will be out their crypto-holdings or their savings all together, depending on how FOMO they get into the lies being fed to them about "the next big thing". Regardless, perhaps with this little run down, a few folks will just avoid them, or perhaps be inspired to lead them. Either way, P&D's are shit shows for the market as a whole and are easily ignorable for those of us interested in Blockchain and the viable companies trying to push real innovation into the space.