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WallStreetBets coin tanks 90% after insider dumps holding

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Re: WallStreetBets coin tanks 90% after insider dumps holding

#21

Post by dragonwriter »

smcn wrote: post #9
xsmasher wrote: post #8

Earlier quoted context omitted.

In what way is this different than a pump and dump? You tout the stock and say it's going to 5x, 10x, whatever because of X. Then the suckers buy. Then you sell.

Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to. If you say "ABC is going to increase 10x because it has a funny name" that obviously won't fly, but if you give a detailed account of why it is possible (this is called…

> Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to.

All pump-and-dumps have an X.

Having a narrative of how the thing you are pumping will go up is not a difference from other pump-and-dump schemes.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#22

Post by smcn »

dragonwriter wrote: post #21
smcn wrote: post #9

Earlier quoted context omitted.

Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to. If you say "ABC is going to increase 10x because it has a funny name" that obviously won't fly, but if you give a detailed account of why it is possible (this is called…

> Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to. All pump-and-dumps have an X. Having a narrative of how the thing you are pumping will go up is not a difference from other pump-and-dump schemes.

It definitely is. A pump and dump is a coordinated effort to artificially raise the price of a stock.

Posting technical analysis and/or positive news that encourages people to take a position is not a pump and dump. No more than any financial article that has ever been written.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#23

Post by dragonwriter »

smcn wrote: post #22
dragonwriter wrote: post #21

Earlier quoted context omitted.

> Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to. All pump-and-dumps have an X. Having a narrative of how the thing you are pumping will go up is not a difference from other pump-and-dump schemes.

It definitely is. A pump and dump is a coordinated effort to artificially raise the price of a stock. Posting technical analysis and/or positive news that encourages people to take a position is not a pump and dump. No more than any financial article that has ever been written.

> A pump and dump is a coordinated effort to artificially raise the price of a stock.

And with what methods are such coordinated efforts carried out? By communicating a narrative intended to convince people that the stock will go up, so that the audience buys it and it does go up.

The narrative is the central element of the pump of a pump and dump.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#24

Post by smcn »

dragonwriter wrote: post #23
smcn wrote: post #22

Earlier quoted context omitted.

It definitely is. A pump and dump is a coordinated effort to artificially raise the price of a stock. Posting technical analysis and/or positive news that encourages people to take a position is not a pump and dump. No more than any financial article that has ever been written.

> A pump and dump is a coordinated effort to artificially raise the price of a stock. And with what methods are such coordinated efforts carried out? By communicating a narrative intended to convince people that the stock will go up, so that the audience buys it and it does go up. The narrative is the central element of the pump of a pump and dump.

There is a big difference between a coordinated effort and open source intelligence which is what most people are performing on WSB.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#25

Post by dragonwriter »

smcn wrote: post #24
dragonwriter wrote: post #23

Earlier quoted context omitted.

> A pump and dump is a coordinated effort to artificially raise the price of a stock. And with what methods are such coordinated efforts carried out? By communicating a narrative intended to convince people that the stock will go up, so that the audience buys it and it does go up. The narrative is the central element of the pump of a pump and dump.

There is a big difference between a coordinated effort and open source intelligence which is what most people are performing on WSB.

Most pump and dump schemes present themselves as intelligence/analysis; there is no content-based objective differentiation, just intent and good-faith.

But, actually, some of the WSB stuff is openly coordinated strategy, not intelligence, overtly seeking to manipulate enough action to cause an outcome, not providing intelligence/analysis on what os likely to occur without active intervention

Re: WallStreetBets coin tanks 90% after insider dumps holding

#26

Post by dragontamer »

smcn wrote: post #20
dragontamer wrote: post #19

Earlier quoted context omitted.

Yeah, no one is going to change short selling rules any time soon because it's all jus t made up crap and rumors from WSB to pump GME. Hate to break it to ya, but you're getting played of you actually think the problem here was short selling. The problem is that skittery online retail can be so openly manipulated to believe such conspiracies and that this leads to the profits of the small leaders of the crowd.

Nobody is trying to change short selling rules. Like I said, this wasn't a rebellion against short selling. Also, this is all verifiable information. I'd encourage you to confirm what it is that I'm saying. Benjamin Graham said that in the short term, the stock market is a voting machine, and in the long term a weighing machine. None of this is anything new. It's just the speed at which information travels that has c…

> Nobody is trying to change short selling rules.

Obviously, it was all just a ploy to trick Redditors into buying GME. If people actually cared about short selling, they'd describe new rules or regulations on the issue.

That's all it ever was. There's not much else to the story. I guess I could go over the bull$$$$ arguments over AMC, BBBY or FRC or any of the other meme stocks. But it's all just meming the stocks up in price.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#27

Post by lupire »

UncleEntity wrote: post #15
smcn wrote: post #9

Earlier quoted context omitted.

Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to. If you say "ABC is going to increase 10x because it has a funny name" that obviously won't fly, but if you give a detailed account of why it is possible (this is called…

You buy a stock, post some “open source intelligence” to convince people they should also buy the stock and sell your shares before eventually you run out of people to convince to buy and the stock returns to “market value”. I’m no Wall Street guru but that doesn’t sound like a pump and dump scheme at all. Some of the other stuff they do is kind of funny in a “some people just want to watch the world burn” kind of wa…

Your first paragraph explicitly describes a pump and a dump.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#28

Post by klyrs »

yieldcrv wrote: post #5

I cant wait to the part of the memecoin cycle where the yield farms pop up again community provided liquidity thats is then locked? kind of perfect imo there’s no reason anymore that a $600,000 sale tanks $50m asset by 90%, just a bad system design where there is no liquidity incentive why even give nocoiners cannon fodder? just do the thing that already distributes the load well enough and fits the risk profile of e…

> why even give nocoiners cannon fodder?

Can't tell who you're asking this of, but as a nocoiner I gotta say it made me giggle... we invest in popcorn, not cannon.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#29

Post by lupire »

smcn wrote: post #4
dragontamer wrote: post #3

Earlier quoted context omitted.

WSB is the Reddit community where everyone openly admits to running with pump-and-dump schemes, with the hopes to not be the dumb bagholder at the end. Its a legally grey zone IMO. Its not a traditional pump-and-dump scheme, but the effects are basically the same. They choose a stock, somewhat at random to pump. They use WSB to communicate and coordinate when the pump occurs. The idea is to use a stock that has nosta…

It certainly has that reputation but it is largely unearned in my experience. There is no explicit coordination happening to create pump and dumps. There has, on occasion, been some level of coordination when attempting to trigger a short squeeze but that is mechanically different than a pump and dump. What it does do, though, is spur memetic investment, which can create a short term frenzy for some stocks but it is…

2.5 years after the "MOASS", even after Ryan Cohen rugpulled WSB with BBBY, GME is still 6x the price it was before. Maybe it's all bagholders who are down 75% from Jan 2021, but that's still amazing.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#30

Post by ikekkdcjkfke »

dragontamer wrote: post #26
smcn wrote: post #20

Earlier quoted context omitted.

Nobody is trying to change short selling rules. Like I said, this wasn't a rebellion against short selling. Also, this is all verifiable information. I'd encourage you to confirm what it is that I'm saying. Benjamin Graham said that in the short term, the stock market is a voting machine, and in the long term a weighing machine. None of this is anything new. It's just the speed at which information travels that has c…

> Nobody is trying to change short selling rules. Obviously, it was all just a ploy to trick Redditors into buying GME. If people actually cared about short selling, they'd describe new rules or regulations on the issue. That's all it ever was. There's not much else to the story. I guess I could go over the bull$$$$ arguments over AMC, BBBY or FRC or any of the other meme stocks. But it's all just meming the stocks u…

But wasn't it facinating that the stock was shorted >100%?
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