Yet they haven't, despite the fact that this phenomenon has persisted for over a year. Either 1) regulators see some practical difficulties in enforcing regulation, or 2) there is some counter-incentive / counter-pressures / lobbyists forces out there deterring regulatory action. I wouldn't be surprised if these scams are allowed to go on for another year.
Regulators are like the fire trucking coming after the home burned down. Regulators seem to do a poor at at stopping people from being scammed. Scammers keep coming up with new types of scams that evade regulators, and people keep falling for them.
It's so much money that all the best scammers can't resist, and so much bureaucracy/regulation that all the honest folks reach their limit and move on.
The reason regulation is introduced in every trading market is because scammers are killing the market. How long do you think an honest operator can survive in a market where 90% of participants are scammers? You talk about skilled participants. The way to have 100% skill is to manufacture an event.
The history of financial markets is rich in examples.
Or more recently, the endless supply of scamming in sports betting where athletes collude to fix games.
It's all just scams, frauds, pump-n-dumps, and outright thefts. I really wish our industry and community would stand up and put a spotlight of shame on this kind of activity.
It will never end but interest can wane enough that it becomes obsolete. Each scam that gets exposed further destroys confidence in it and that's really all it has going for it.
Unfortunately a lot of people are gonna get scammed. This has happened so many times… I’m a bit surprised financial regulators aren’t cracking down on it just yet.
Yet every example you gave was over 10 years ago and there has been regulation enacted to prevent that kind of exploit. Meanwhile every week some crypto scam blows losing some people billions, hundreds of millions or just tens if it's a good week.
We can go after the scam artists today because of the same regulations that disallow this party.
The only reason people think these regulations are unnecessary now is because they've never experienced the types of fraud that these regulations were meant to address.
What a meaningless platitude, I'm sure it's the sort of thing was repeated in the 1930s a lot.
This is the reason organizations exist to regulate things around trade, otherwise you can get shady exchanges quoting bogus prices with zero accountability. Lots of people are going to get scammed before this gets better.
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