And lots of naked shorts, inexistent shares sold by private market makers such as Citadel were deployed to suppress the price. Also don’t forget about dark pools and other tricks done to suppress the price action that are done shamelessly behind the scenes.
Perhaps cryptos have become so successful over time because this type of manipulation is harder to pull off but that doesn’t make cryptos safer either.
If it wasn’t for the high inflation rate I would not touch the market even with a 10 foot pole.
The price of cryptocurrencies is currently massively, massively manipulated. Not just "investors with deep pockets buying and selling strategically", not just "insider trading", but outright pumping massive amounts of fake money into the markets, and dishonest exchanges.
I'm not saying no one has ever tried to manipulate the price of a cryptocurrency before. But the scheme you describe is not sustainable for a long period of time.
I have been trading crypto for 5 years now and it is a wet dream for rogue traders. There was a myriad of stories about traders and even banks that tried to pull of some shady statretgy in the stocks markets that the SEC shut down, those same strategies seem to be fair game in the crypto world, you just have to have pockets that are deep enough. My point is that if you are smart and think you can beat or even keep up with the crypto market, you will end up losing because it’s been rigged for years.
Except it's even worse for crypto because many tokens don't nearly have the same liquidity as traditional stocks so market manipulation is even easier with crypto.
Really unfortunate that a lot of crypto was just these rich dudes pumping and dumping, and all getting together to perform rug pulls on a bunch of 'retail investors'.
Crypto is a cess pool of unscrupulous practices and questionable ethics facilitated by the lack of market regulation and oversight. And in some cases like this one, outright legal fraud.
Anyone surprised by this must be living under a rock. NFTs and crypto in general has turned into mostly an unregulated playground for market manipulation.
It's sad to see these fantastic technologies falling into darkness. Same can be said about the majority of the internet and its phenomenon to be honest.
The prices of these coins can and does get manipulated all the time. Real people will get burned, badly. You can't even depend on these exchanges to actually handle high trading volume when there are price crashes. It's honestly a joke that anyone trusts this system as it currently stands.
Anyone who seriously believes in a future of cryptocurrency should be calling this crap out instead of brushing everything bad about it under the rug and labeling it as FUD. The problem: very few people actually believe in cryptocurrency, most are looking for a quick buck instead.
It's even worse when you realise a lot of them are kids, playing with manipulation tactics for quick "pump and dumps" on discord channels etc. Crypto in general is a madhouse.
Crypto was much more legitimate when it was used just for illegal transactions. But it was not the "not your wallet, not your coins" folk that made valuation skyrocket, it was these scams.
The fact that they stick a price ticker at the top before getting to the content speaks volumes (pun!).
Regardless of what cryptocurrency could have been what it did become is an incredibly sleazy speculative craze with all the worst financial instruments of the past 200 years speedrun.
Although to be fair I can’t think of a use case outside of evading authorities, so I suppose this was inevitable.
See: crypto. Marvelous technology. Ruined in the public's eye because of the amount of scams in it. Those same scams were used as justification for strict KYC laws. Which did not do much to stop the fraudsters really, hurt legally operating investors' privacy instead.
Perhaps cryptos have become so successful over time because this type of manipulation is harder to pull off but that doesn’t make cryptos safer either.
If it wasn’t for the high inflation rate I would not touch the market even with a 10 foot pole.
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