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.
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.
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.
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.
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.
Crypto is a scam propped up by criminals and price manipulators, both seeking profits at the expense of idiots. It has achieved nothing it promised, defrauded a lot of honest investors and made a lot of undeserving people unreasonably rich. Everybody involved in creating a cryptocurrency should be in prison.
Due to the existence of crypto/real currency exchange and the casual participation of whales who dwarf the community of real users, it is completely and utterly vulnerable to real world economic trends, rendering it useless as any kind of hedge. It has demonstrated time and time and time and time again that it is ludicrously vulnerable to exploitation in a thousand different dimensions even the most fiendishly clever people can't predict, and has wasted a spectacular amount of power for no real return. It has led to a disgusting and desperate financialization of anything and everything that has social relevance, to try and smear even a smidgen of that relevance on crypto itself, as it desperately searches for a use-case to justify itself, and it has created a generation of grifters who clog our content spaces with nonsense information about it.
I feel bad for people who were too ignorant to realize that cryptocurrency is a massive fraud perpetrated by a few very shrewd insiders the same way that Wall Street bankers manipulate financial markets.
This is a problem that everybody seems to skip over with cryptocurrencies.
Cryptocurrencies are being sold as eliminating trust and allow us to rely on the cold certainty of mathematics. Only trust hasn't been eliminated from the system, it's just been shifted from a central bank to the authors of the software client you're using. To the majority of the miners in the network.
The awful politics, lies, greed, corruption, are still here in all their glory.
It's not clear how many people actually do trade in cryptocurrency. The sector is so rife with dodgy activities that any estimates of volume on exchanges should be treated as wholly false.
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