The bitcoin exchange rate remains in the range despite a sharp rise the day before
After the release of “triangle”, Bitcoin is still trading in a flat, it ranges is clearly limited by the resistance level at $6792, and district support at $6165 (according to quotations of the exchange Coinbase).
The usual style of trading almost flat for the pair BTC/USD is suitable for traders working in the day. It attracts short-term speculators, however, some more attracted to the prospect of “quick money” and pump and dump strategies.
The strategy pump and dump is the artificial manipulation of prices of a certain asset, often illiquid and obscure. Players-insiders purchase the selected asset, and then they can be connected to a crowd of followers, then the price of bitcoin starts to grow, due to growth, then the players who bought the first, begin to take profits and sell, after that the rate drops sharply. Those who bought the first to benefit, but those who bought at the peak lose money. The problem is that “peak” be defined in advance is impossible.
Schemes pump and dump are not legal ways of earning, and the stock market clearly dealt with. However, the cryptocurrency market, with its lack of regulation and low volume of trade, became very attractive for these schemes. The most famous was the exchange Yobit that openly “panic” tokens – this time it’s a coin Lambocoin, which has risen in 1793 times. Prior to this, the platform increased the rate Putin Coin 14 times.
It is noteworthy that the strategy of “pampas” on the exchange Yobit differs from the standard, as the organizers are open – company officials announce another questionable action in your Twitter account. Almost always, even despite the lack of regulation of the market of digital money, “pampas” are hidden from prying eyes — in private chat Telegram, access to which is paid. All the user has to guess the reasons for the growth in the value of certain tokens after the price repeatedly rose and fell.
But the actions Yobit challenge non-regulators. In my opinion, in case of continuation of such actions “Pampa”, the exchange will be blocked. Pump and dump is a classic example of the earnings on the losses of others. If such a scheme will continue to be implemented by the exchange Yobit, it will lead to even greater disappointment of investors in cryptocurrency, because it will once again demonstrate its weak regulation, and a kind of anarchy. To participate in “Pump and Dump” — it’s like to participate in the financial pyramid — earn is possible, but extremely unlikely.
“International Financial Center”