Pump and Dump Schemes

There are many coins that seem like a great deal, they are often cheap and you can buy many of them.  Big names in the Crypto currency scene such as John McAfee used to tell people of their coin of the day (now coin of the week) and after announcing such a coin to his 300,000 twitter followers the coin of the day sky-rockets.  One example of this lately was XVG or Verge that went from a fraction of 1c USD on 12th of December 2017 to a high of 26c on the 26th December 2017

pump dump scheme - XVG

Although it looks like its high again now, there is no team behind this product, there is only one developer that hasn’t been heard from in months, it has a weak whitepaper and not much of a roadmap for a path forward, also the programming hub (github) for the project hasnt been updated for months.  All of these points are key indicators of a pump and dump coin.  I exited the coin around 25c and put my money back into something I trusted more like XLM.  Verge was coin of the day at one point on John Mcafee’s twitter feed which led to it pumping up to 26c before it went back down again.  It was around this time that there was evidence that Mcafee was shilling coins.

Reference Links regarding Mcafee shilling coins:

Another coin that was a pump and dump scheme (imho) was Tron (TRX) – I bought in at 3c and it went as high as 23c before coming way down, TRX wasn’t shilled by Mcafee but by a Chinese guy (Justin Sun) who is very popular in china and was able to market his coin to chinese investors as the future of entertainment payment.  However the coin had a whitepaper that had been copied from another site, the rest of the statistics from his website were incorrect and were hyped up to make it seem like it was a much more popular project than it really was.  Also there has been a large sale of the developers held coins in the past few months.  I exited TRX around 20c when the news of the pump and dump scam came out.

References:

I just read Tron’s whitepaper. It raises more Red Flags than a Worker’s Parade inside the Soviet Union from CryptoCurrency

The point of this article is not to warn you off pump and dump and other shilled coins, you can make money out of a cheap but shilled coin, I have now a couple of times, but you need to A) watch the market, know when to get out and B) read the crypto news on reddit or another crypto forum.  People on these forums are doing the work for you so you know whats good, whats bad, and whats a scam.

 

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