Mt. Gox Cold Wallet Moves 8200 BTC – Will Bitcoin Dump?
Bitcoin whales dump $100 million of digital currency in 24 hours
As expected, online forums lit up, speculating on what or who was behind the sharp move lower.
In my opinion, it’s a colossal pump-and-dump scheme, the likes of which the world has never seen. In a pump-and-dump game, promoters “pump” up the price of a security creating a speculative frenzy, then “dump” some of their holdings at artificially high prices. And some cryptocurrencies are pure frauds. Ernst & Young estimates that 10 percent of the money raised for initial coin offerings has been stolen.
Pump and Dumps are the banes of any growing market, where most lose while a select few make a generous profit. The ethics of this business is murky at best and downright abysmal at worse.