Pump and Dump | Bitcointalksearch.org

Tektesh

newbie

Activity: 10

Merit: 0

Quote

any form of market manipulation is considered illegal in any country as far as i know. and pump and dump is officially a form of "fraud" which is inflating prices through false and misleading positive statements, so that the manipulator can dump what he bought at a higher price.

Could not of said it better myself and I just read up on a new type of blockchain technology developed by a group by the name of Bitcoin Origin and they have some interesting reforms on how they would prevent pump and dumps through this new technology. They plan to achieve this by implementing a Proof of Ambassador system which will require investors to supply them with certain prerequisites like Proof of Capacity,Environment,identity,stake and community.

Check them out in the link below:

https://www.bitcoinorigin.io/

Dudeperfect

hero member

Activity: 1190

Merit: 534

If you are asking it in the context of crypto then it is not illegal to do it because the entire crypto industry is not yet recognized in the eyes of law. However, it highly unethical to plan or participate in any pump and dump strategy. It is none other than stealing someone's money by creating a fake upward moment in the market. On the other hand, those who don't do any research and invest just because the price is going up are equally responsible for their losses.

jassicaket

newbie

Activity: 35

Merit: 0

Quote from: wilburwilbur on January 04, 2018, 10:43:42 PM

Is pump and dump illegal or not?
if not can you share a link of it ?

1. yes, you are right way pump and dump illegally this forum do not it.
2. if you share any link so sometimes banned permanently, no consider this bargain.
so be carefully posting.

wudackprod

full member

Activity: 1316

Merit: 121

Of course, price speculation(bump dump) not legal in all countries in the world, but we can find artificial change caused by a group of investors or even a team of project

FeverMore23

newbie

Activity: 224

Merit: 0

Pump and Dump is not illegal, only the person who is not researching about cryptocurrency are their victim. The person who don't have time to search about whitepaper and the project of each coin or token.

wvizmanos

jr. member

Activity: 168

Merit: 1

[/quote]

Haven't heard of this yet. How are they addressing this problem?
[/quote]

What I meant was some startup exchanges into icos have this solution as part of their product and offering this seem to attract clients, me included.

Danny Uchay

newbie

Activity: 13

Merit: 0

I feel pump & dump affects the whole cryptocurrency industry as it scares off potential investors.

homeidea11111

newbie

Activity: 20

Merit: 0

Quote from: wilburwilbur on January 04, 2018, 10:43:42 PM

Is pump and dump illegal or not?
if not can you share a link of it ?

The USA SEC ruled that P&Ds are illegal and are offering bounties to report the members of P&Ds. The bounty is applicable if they are convicted. So yes, P&Ds are illegal in the USA.
Knowing the EU and UK regulations, P&Ds even in cryptocurrencies would be illegal, even if not regulated.

CryptoSheikh

jr. member

Activity: 168

Merit: 1

Market manipulation is illegal generally. You can find legal sources about it easily. But crypro isn't fully regulated right now, so it's really hard to punish those group owners legally

jseverson

hero member

Activity: 1834

Merit: 759

Quote from: wvizmanos on May 14, 2018, 11:46:02 PM

Pump and dump for me is not legal, as I haven't seen yet any law that says it is, or am I just commenting blindly? At best it is unethical IMO.

Pump and dump is illegal, but only in its original context, where it's usually applied to the stock market. It seems to be free for all for cryptocurrencies at the moment (I haven't seen any ICO being shut down solely because of pump and dump), but I won't be surprised if regulators made crypto exchanges implement rules to prevent them, similar to penny stock regulations.

Quote from: wvizmanos on May 14, 2018, 11:46:02 PM

Some icos are even addressing this problem already.

Haven't heard of this yet. How are they addressing this problem?

Poortorich2018

newbie

Activity: 70

Merit: 0

the pump and dump scam is the illegal act of an investor or group of investors promoting a stock they hold and selling once the stock price has risen following the surge in interest as a result of the endorsement. ... Pump and dump scams tend to only work on small and micro-cap stocks ...

wvizmanos

jr. member

Activity: 168

Merit: 1

Pump and dump for me is not legal, as I haven't seen yet any law that says it is, or am I just commenting blindly? At best it is unethical IMO. To pump and dump is to create a temporary hype with a lasting mark especially those who already came in late in the wagon. I know a few friends who tried riding the P and D and ended up with their monies half of the original value.
There are however measures being put in place to address this pump and dump. Some icos are even addressing this problem already.

odolvlobo

legendary

Activity: 4466

Merit: 3391

Quote from: Johann Strauss on January 24, 2018, 12:09:07 PM

But Bitcoin is not a stock nor a commodity. It may be illegal at regular exchanges like CBOE or Nasdaq, but how is that illegal at Bitcoin ones? We don't even know what these exchanges are doing themselves, and whether they are not doing things like front-running the orders of their clients or similar stuff. Bitfinex is rumored to be printing virtual dollars out of thin air just like that. I don't know how legal that could possibly be. Though I agree that P&D groups are mostly scams, but I still don't get what's wrong with a tightly-knit group of people to exert influence on prices by massive buys or sells.

I'm sorry if I misinterpreted your statement. I agree that P&D in this case is not necessarily illegal because cryptocurrencies are not regulated securities (at least in the U.S.).

However, I am not talking about a tightly-knit group of people. The intended victims of a P&D group are the members themselves.

Johann Strauss

newbie

Activity: 17

Merit: 0

Quote from: odolvlobo on January 16, 2018, 11:56:05 PM

Quote from: Johann Strauss on January 05, 2018, 07:14:25 AM

If pump and dump comes from traders, it shouldn't be illegal....

Quote from: wilburwilbur on January 05, 2018, 04:34:47 AM

... what will happen to them if they were caught and said that they're part of the group that pumps and dumps?

Quote from: GraciousBanshee47 on January 05, 2018, 07:16:50 AM

It's difficult to determine if certain pump and dump in prices were actually orchestrated...

It is clear that many people don't know what a pump-and-dump scam is. That is unfortunate, because their ignorance may lead them to join a pump-and-dump group, not knowing that they are the intended victims.

Pump-and-dump is not a rise in price followed by a fall in price. That is the result of a pump-and-dump.

If I quoted you, please read this:

Quote from: https://en.wikipedia.org/wiki/Pump_and_dump

"Pump and dump" (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements...

But Bitcoin is not a stock nor a commodity. It may be illegal at regular exchanges like CBOE or Nasdaq, but how is that illegal at Bitcoin ones? We don't even know what these exchanges are doing themselves, and whether they are not doing things like front-running the orders of their clients or similar stuff. Bitfinex is rumored to be printing virtual dollars out of thin air just like that. I don't know how legal that could possibly be. Though I agree that P&D groups are mostly scams, but I still don't get what's wrong with a tightly-knit group of people to exert influence on prices by massive buys or sells.

odolvlobo

legendary

Activity: 4466

Merit: 3391

Quote from: Johann Strauss on January 05, 2018, 07:14:25 AM

If pump and dump comes from traders, it shouldn't be illegal....

Quote from: wilburwilbur on January 05, 2018, 04:34:47 AM

... what will happen to them if they were caught and said that they're part of the group that pumps and dumps?

Quote from: GraciousBanshee47 on January 05, 2018, 07:16:50 AM

It's difficult to determine if certain pump and dump in prices were actually orchestrated...

It is clear that many people don't know what a pump-and-dump scam is. That is unfortunate, because their ignorance may lead them to join a pump-and-dump group, not knowing that they are the intended victims.

Pump-and-dump is not a rise in price followed by a fall in price. That is the result of a pump-and-dump.

If I quoted you, please read this:

Quote from: https://en.wikipedia.org/wiki/Pump_and_dump

"Pump and dump" (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements...

RektEx

newbie

Activity: 62

Merit: 0

Not illegal but don't do it.

GraciousBanshee47

newbie

Activity: 79

Merit: 0

It's difficult to determine if certain pump and dump in prices were actually orchestrated, unless of course an insider admits it. So bottom line is, yes, it is against the law, but it's difficult to detect especially for mid to large market caps.

Johann Strauss

newbie

Activity: 17

Merit: 0

Quote from: wilburwilbur on January 04, 2018, 10:43:42 PM

Is pump and dump illegal or not?
if not can you share a link of it ?

If pump and dump comes from traders, it shouldn't be illegal. But if it comes from exchanges themselves, then it should be prohibited. Regular exchanges are punished for this sort of activity, but they still do it anyway. With crypto, it is a wild West.

znxs

newbie

Activity: 11

Merit: 0

Quote from: wilburwilbur on January 05, 2018, 04:34:47 AM

Quote from: pooya87 on January 04, 2018, 11:13:03 PM

Quote from: wilburwilbur on January 04, 2018, 10:43:42 PM

Is pump and dump illegal or not?

any form of market manipulation is considered illegal in any country as far as i know. and pump and dump is officially a form of "fraud" which is inflating prices through false and misleading positive statements, so that the manipulator can dump what he bought at a higher price.

Quote

if not can you share a link of it ?

https://www.google.com/search?q=Is+it+legal+to+pump+and+dump

okay okay let's say pump and dump is illegal. who will catch them? is there any consequence? what will happen to them if they were caught and said that they're part of the group that pumps and dumps?

untraceable

wilburwilbur

member

Activity: 266

Merit: 33

Quote from: pooya87 on January 04, 2018, 11:13:03 PM

Quote from: wilburwilbur on January 04, 2018, 10:43:42 PM

Is pump and dump illegal or not?

any form of market manipulation is considered illegal in any country as far as i know. and pump and dump is officially a form of "fraud" which is inflating prices through false and misleading positive statements, so that the manipulator can dump what he bought at a higher price.

Quote

if not can you share a link of it ?

https://www.google.com/search?q=Is+it+legal+to+pump+and+dump

okay okay let's say pump and dump is illegal. who will catch them? is there any consequence? what will happen to them if they were caught and said that they're part of the group that pumps and dumps?

lordquanta

sr. member

Activity: 770

Merit: 268

Quote from: wilburwilbur on January 04, 2018, 10:43:42 PM

Is pump and dump illegal or not?
if not can you share a link of it ?

As far as bitcoin or crypto currency is concerned then pump and dump is common phenomenon. You could find these kind of practices across all the exchanges across the world that too on regular basis. Interestingly bitcoin has its spread across the globe thus it is difficult pump and dump in specific exchange. However this kind of practice also result in reverse way as well. That is if bitcoin price in specific exchange could trigger other exchanges to follow the same suit.
Same is true for the alt-crypto currencies.

bitperson

full member

Activity: 210

Merit: 119

It's not possible to make a global blanket statement such as 'pump and dump is illegal'. One would need to know exactly what the OP means by 'pump and dump'. Laws differ between jurisdictions, so what is illegal in one country might be legal in another. Even if legislation has been passed against stock market manipulation, those laws might not apply to crypto currencies. Finally, it's unclear what definition of 'illegal' the OP is using - criminalised as in might land you in jail, or sanctionable by e.g. punitive tax?

pooya87

legendary

Activity: 3472

Merit: 10611

Quote from: wilburwilbur on January 04, 2018, 10:43:42 PM

Is pump and dump illegal or not?

any form of market manipulation is considered illegal in any country as far as i know. and pump and dump is officially a form of "fraud" which is inflating prices through false and misleading positive statements, so that the manipulator can dump what he bought at a higher price.

Quote

if not can you share a link of it ?

https://www.google.com/search?q=Is+it+legal+to+pump+and+dump

wilburwilbur

member

Activity: 266

Merit: 33

Is pump and dump illegal or not?
if not can you share a link of it ?

Topic: Pump and Dump (Read 357 times)