Media Release
Jan 17: Cryptocurrencies are continuing to dominate 2021, and according to many experts, even though the market has recorded a huge drop, it will rise by the end of the year, and many digital assets will be able to shatter records. Bitcoin alone is speculated to reach around $100,000 in December and thus continue its rally to 2022.
That is why many people from around the world are actually keen on registering and trading crypto now and earn a spot in which they can profit in the coming months. Trading crypto is not as easy and as simple as one would think.
Speaking on that note, we wanted to take a look at one controversial part of trading, known as pump and dump. We’ll be explaining in detail what this process means and whether it is good or bad for trading. But first, let’s see where you actually trade cryptocurrencies.
Trading Crypto
Cryptocurrencies are traded at so-called trading sites. These are secure sites that allow you to connect with other traders from around the world and thus, buy or sell your digital assets. But, in order to do that, you must register at a certain platform.
Luckily, the process of registration at trading sites is very simple as you are only required to provide the platform with basic information about yourself. It lasts just a minute, and due to the fact that reputable trading sites utilize the latest security systems, your data will always stay protected.
Speaking of reputable trading platforms, one of those sites is Bitcoin Code, known for its state-of-the-art Bitcoin Code software. This site even uses advanced AI systems that track the latest market developments and can help traders maximize their profits by providing them with accurate predictions on the price of a certain cryptocurrency.
Okay, now that we are familiar with the process of trading crypto, let’s see what pump and dump means.
Crypto Pump and Dump
Pump and dump is a process where an individual or a group buys large quantities of a certain cryptocurrency for one price and then decides to re-sell it for a massive price. In doing so, the value of that cryptocurrency sky-rockets.
This is a very controversial technique that is used by some and may have massive consequences. The late John McAfee is a perfect example. After he was accused of motivating people on Twitter to buy crypto and implement the pump and dump scene, he was arrested at the airport in Barcelona.
McAfee was accused of manipulating the market with Dogecoin, Verge, and ReddCoin.
One other pretty famous person that is now often accused of pumping and dumping cryptocurrency is Elon Musk. In February, his company Tesla purchased $1.5 billion worth of Bitcoin and helped Bitcoin rise by over $4,000 in just a few days in April 2021.
Moreover, at the recently-held B Word crypto conference, he stated that he own dogecoin and Ethereum and, in doing so, managed to help these two cryptocurrencies rise in value. Moreover, he stated that Tesla is likely to start accepting Bitcoin as a payment method soon and that helped Bitcoin go over $60,000. He was even asked if he uses this method, to which he replied that he might pump the price of a crypto, but he never dumps.
Final Thoughts
Pump and dump is not a new tactic used to manipulate the price of a certain product. In this particular case, that involves manipulating the crypto market, and as we saw with the case of John McAfee, those who participate in these activities might be put in a bad position.
Communication on pump and dump usually takes place on encrypted platforms such as Telegram, and as many as several thousand people can agree on utilizing this fraud strategy.