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Dogecoin market manipulation?

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Re: Dogecoin market manipulation?

#81

This illustrates a simple idea in economics: cartels are hard to maintain because participants will look out for their own self-interest.

I don't know the literature, and what assumptions they make in there, but out in the real world the lightbulb cartel lasted from 1924 till 1942 or thereabouts. The keyword to look for is "Phoebus Cartel". Also, recently in the news: the Silicon Valley wage-fixing cartel. They may be hard to maintain, but they do spring up and may exert power while alive.

According to the section entitled "Demise":

>In the late 1920s a Swedish-Danish-Norwegian union of companies (the North European Luma Co-op Society) began planning an independent manufacturing centre. Economic and legal threats by Phoebus did not achieve the desired effect, and in 1931 the Scandinavians produced and sold lamps at a considerably lower price than Phoebus.

They are, in fact, difficult to maintain. That doesn't mean impossible, but your chances of maintaining a cartel in a free market drop drastically within the first few years, if not the first few months.

And let's not fail to consider the fact that the economy back then was much less globalized, and therefore much easier to cartelize then it is today.

Re: Dogecoin market manipulation?

#82

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…

All traded things are subject to market manipulation. It helps though if there's a bunch of real volume and a dozen or two active exchanges, that makes it harder to move the market.

With Dogecoin however, barely any exchanges, and most of the circulation from their insanely steep on-ramp is in the hands of a handful of people... gonna be a lot of milking going on there.

Re: Dogecoin market manipulation?

#84
post #70

Gee, I totally get somebody putting money into Bitcoin or mining Litecoin, but the rest are honest scamcoins (or at least - circuscoins). If you mine, then it's probably okay, although it still costs you real money (energy, hardware, opportunity cost, etc.), but to put money (fiat or bitcoins) into it - you need to be completely out of your mind!

What makes Bitcoin and Litecoin not scam coins?

Re: Dogecoin market manipulation?

#85
post #66

Earlier quoted context omitted.

Some of these altcoins are the epitome of the greater fool theory, where most participants are perfectly aware that it is a rationally poor decision to invest in them but do it anyway because they think someone will buy it for more later. It turns out people can make huge returns even from investing in known scams - certainly not guaranteed, but it's better odds than gambling.

Really? Only "altcoins"? They have the exact same mechanics, structure, and backing as Bitcoin...

[deleted]

Re: Dogecoin market manipulation?

#86
post #65

Earlier quoted context omitted.

That's the value of the Dogecoins being mined every day: Blocks per day: 60 * 24 = 1440 ( https://bitcointalk.org/index.php?topic=361813.0 ) Current block reward: ~500,000 doge ( https://bitcointalk.org/index.php?topic=361813.0 ) Total block rewards per day: 1440 * 500,000 = 720,000,000 doge Current exchange rate: 1 doge = US$0.0017 ( http://dogecoin.com/ ) Total block rewards in USD per day: 720,000,000 * 0.0017 = $…

That would make sense if every miner immediately sold every coin he/she mined.

[deleted]

Re: Dogecoin market manipulation?

#87
post #65

Earlier quoted context omitted.

That's the value of the Dogecoins being mined every day: Blocks per day: 60 * 24 = 1440 ( https://bitcointalk.org/index.php?topic=361813.0 ) Current block reward: ~500,000 doge ( https://bitcointalk.org/index.php?topic=361813.0 ) Total block rewards per day: 1440 * 500,000 = 720,000,000 doge Current exchange rate: 1 doge = US$0.0017 ( http://dogecoin.com/ ) Total block rewards in USD per day: 720,000,000 * 0.0017 = $…

That would make sense if every miner immediately sold every coin he/she mined.

Miners have to pay for electricity and hardware. I doubt they're doing that with Dogecoins.

Re: Dogecoin market manipulation?

#88

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.

Considering how little enforcement (none) there is over pump-and-dump scams with pink sheets and the forums those frauds take place in stay open for years, there should be no expectation of prosecution from doing this.

Re: Dogecoin market manipulation?

#89

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…

It's funny how so many people are avoiding trading now because they're afraid of him. If you can't even handle some bored 13-year-old princeling, do you really think you're going to somehow do way better going up against Goldman Sachs in the real markets?
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