41–50 of 167 posts
Game theory in action. There will always be manipulation in every market, even in doge. Early hedge fund managers here.
Earlier quoted context omitted.
> Do not invest anything you are not prepared to lose. Let me fix that for you: > Do not gamble anything you are not prepared to lose.
Investing always is a gamble.
Investing is when the instrument has measurable properties and explanations for why it will become more valuable - i.e. you invest in making your factory larger, so it can produce product more cheaply.
Betting on completely unregulated currency markets (which have good reasons that they shouldn't have any value at all) is gambling, because you're entirely depending on irrationality. That said...quite a few businesses with that model.
I'm not sure why it's on HN, but it's real. It was originally happening in the public channel #dogecoin-market on Freenode but was then moved to the private channel #marketmakers, which seems to have spurred people to start sharing it everywhere since now it's private. Wolong is the guy who brought the Dogecoin price to where it is now by investing a ton of money into it, and due to that and some charisma he's attrac…
Why are you sure this is legal (everywhere)? No it isn't regulated by the SEC, but that does not mean that it isn't fraud.
It's perfectly legal if it's not specifically regulated as a financial market. Tons of firms do things quite like this - over-the-counter derivatives are rife with various market manipulations.
Earlier quoted context omitted.
Investing always is a gamble.
Gambling is when the game is purely driven by luck. Investing is when the instrument has measurable properties and explanations for why it will become more valuable - i.e. you invest in making your factory larger, so it can produce product more cheaply. Betting on completely unregulated currency markets (which have good reasons that they shouldn't have any value at all) is gambling, because you're entirely depending…
The way I like to think of it is, it's gambling when your expected rate of return is negative or zero. It's investing when it is positive.
This is why a gambler is gambling, but a casino is investing/running a business.
I'm not sure why it's on HN, but it's real. It was originally happening in the public channel #dogecoin-market on Freenode but was then moved to the private channel #marketmakers, which seems to have spurred people to start sharing it everywhere since now it's private. Wolong is the guy who brought the Dogecoin price to where it is now by investing a ton of money into it, and due to that and some charisma he's attrac…
Why are you sure this is legal (everywhere)? No it isn't regulated by the SEC, but that does not mean that it isn't fraud.
My statement was from the angle that if you get ripped off in a situation like this, there is no recourse for you, and not legal advice that you cannot get in trouble for participating in these activities.
I'm not sure why it's on HN, but it's real. It was originally happening in the public channel #dogecoin-market on Freenode but was then moved to the private channel #marketmakers, which seems to have spurred people to start sharing it everywhere since now it's private. Wolong is the guy who brought the Dogecoin price to where it is now by investing a ton of money into it, and due to that and some charisma he's attrac…
There's so many people trying to pump these different coins that I can't see any efforts being too successful.
Sounds from the pastebin content that they weren't really managing to coordinate even a small group?
Meh. The only reason the price is as low as it is currently is that A) $850,000 needs to be added to the market every single day just to keep the price stable B) Coinbase et al. literally can't convert dollars to BTC fast enough. The situation is similar to how whenever Apple releases a new iPhone, it takes literally months until there is enough supply to match the demand. While this market manipulation is blatantly…
Earlier quoted context omitted.
Why are you sure this is legal (everywhere)? No it isn't regulated by the SEC, but that does not mean that it isn't fraud.
How would it be fraud? It's perfectly legal if it's not specifically regulated as a financial market. Tons of firms do things quite like this - over-the-counter derivatives are rife with various market manipulations.
To me, the whole situation is an incredible demonstration of why "free markets solve everything correctly" is only (even potentially) true as N_participants -> infinity - and even more so a direct lesson in how thoroughly a "market" can fail when it's too small...