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Anorak | Was The Entire Run Up Of Bitcoin On Mt. Gox Just A Pump And Dump?

Was The Entire Run Up Of Bitcoin On Mt. Gox Just A Pump And Dump?

by | 29th, May 2014

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THERE’S intriguing evidence that last year’s run up of the price of Bitcoin on MtGox was simply a pump and dump operation by the owners of the site. For there was a result buyer, every few minutes, of ever more of the cryptocurrency. And no one can really say where that money has gone. It seems to be a phantasmal account, one that existed only on the site, in order to increase demand for the currency and thus push its price up. In the finance world this is known as a pump and dump scheme. Keep buying small amounts of something and watch the price creep up. Then dump the whole holding back into the market before anyone cottons on to what you’re doing. Done right this can be very profitable.

Unfortunately of course the site itself went bankrupt before

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Posted: 29th, May 2014 | In: Money, News Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink