Understanding what a pump-and-dump scheme is involves recognizing its two main phases and how social media plays a role. The “pump” phase: Creating hype In the pump phase, scammers start by acquiring a large number of shares in a cheap, often obscure stock. They then begin an aggressive...
The most popular cryptocurrency is Bitcoin, and it’s a fungible token. When something is fungible, it can be exchanged for something similar or equal to it in value. 1 BTC is equivalent to every other Bitcoin. But 1 NFT isn’t equal to every other NFT - different NFTs have different v...
A meme stock refers to the shares of a company that have gained viral popularity due to heightened social sentiment. This social sentiment is usually due to activity online, particularly on social media platforms. These online communities can dedicate heavy research and resources toward a particular ...
A cowboy marketing situation is similar to the illegal scheme known aspump and dump. In a typical pump and dump, there are attempts to boost the price of a stock through false, misleading, or greatly exaggerated statements recommending a stock. Traditionally done through cold calling—and now ...
Pump and dump schemes in which traders create excitement and hype around a DApp to drive the price to an unsustainable price before selling their shares and crashing the stock. Smart contract vulnerabilities that can enable attackers to drain funds from a contract. ...
So if you’re a victim of a pump-and-dump scheme where the broker-dealer convinces you to buy 100 shares of XYZ and the value drops, all we can do is return those securities to you, whatever the value may be. But if there’s theft — like what Bernie Madoff did, conducting a ...
Unlike ICOs, which are more of a “wild west” type of offering, STOs adhere to specific regulations and are overseen by regulators. A token is considered a security if it answers “yes” on all 4 questions on the Howey Test (explained in the full post below)....
A chop stock is another type of microcap stock fraud. Chop stocks allow brokerage houses to dump stocks with very little liquidity on the unsuspecting public; all while gaining large profits that do not have to be reported as commissions. The way that brokers sell chop stocks creates a conflic...
Forex is traded 24 hours a day, five days a week. This is different from stocks which are only active during the trading hours of stock exchanges. Of course, this applies not only to US stocks, which are the most liquid and popular but also to other markets. 立即执行 Immediate execution...
2024 stock market outlook Overall, 2024 is expected to be a transition period for the stock market, with a somewhat bumpy ride early on. Next year, investors can expect declining inflation, reasonable economic growth, and potentially, interest rate cuts by the Federal Reserve, according to Niladr...