Without researching it or knowing few of the fundamentals of the coin, I can say those people who own NIMIQ are sitting on some good coin to sell.
Does everyone remember PIVX? How did that work out for people who bought it when it popped? Would this time be any different?
I just say all this because I expect now to see 20 YouTube videos about what a unique technology NIMIQ is now that it has popped.
When DGB popped many people wanted me to cover it... why would I? DGB has 1st generation bitcoin technology, and was a pump and dump that people were falling prey to. Why would I cover that?
PRICE APPRECIATION DOES NOT EQUAL SOLID VALUATION OR A GOOD INVESTMENT OR INNOVATIVE TECHNOLOGY
There is a lot of people out there who need this tattooed on their body. As a Christian, I do not strongly promote tattoos but scriptures or other statements that prevent stupid would be a good start!
HOW PUMP AND DUMP WORKS
Market pricing is realized as much as it is by supply as it is demand.
Very little demand can skyrocket price, if one condition is met... limited supply.
"But I see they have 10.5 million coins, that is their total supply, right?"
Wrong. Price works off liquid market supply, both seen and unseen. The visible market supply in most cases on most coins is less than 5% of the coins in existence.
How to make a Pump and Dump. LIMIT SUPPLY!
Notice the 24 hour volume of this coin is less than $100k. Meaning, the 100,000% increase, was created by using less than 100k. This means a millionaire could have accumulated the coin or been part of the initial ownership, and issued a simple buy command on 1 exchange to pump the price that high. Then it feeds into the top 10 on coinmarketcap.com.
Thankfully, the coinmarketcap.com people have already removed this coin from the top 10. Maybe I wont have to bear those videos afterall.
Thanks for the informative post. This is so,thing everyone should be aware of when investing in cryptocurrencies.
Price inflation does make it look enticing to invest in. Obviously there are a lot of other factors to look at as well. Thanks for sharing. Resteemed.
seen this too, its 0n the top 500 now, Bogus coin should be eliminated in the market
Is there a way to short a coin like you can a stock?
Yes. The problem with shorting things in cryptocurrency world is poloniex is the most popular place to do it, and there are 2 limitations and a downside:
... meaning if bitcoin drops 10% and the coin your short likewise drops 10%, you break even and paid fees. Best time to short is when bitcoin rallies to the point it causes altcoins to drop. That's really the only time, and you might as well just buy bitcoin on margin and use leverage to ride it higher, rather than shorting.
Downside is also, expect to pay high interest rates at certain times to borrow bitcoin.
If the GDAX flash crash of ETH taught us anything it's either (1) don't trade on margin and (2) if you do trade on margin, ensure the collateral is not the underlying you are borrowing.
Great explanation of a pump and dump with a perfect example of it being done!
There was another coin terranova which was priced at 5k and marketcap of 1.4 b
Great post Ted - I noticed this NIMIQ event earlier today - thanks for your explanation on what happened.
You up for 'Lord of the Steem' mate? (when it eventually gets here)
SK.
Thanks @crypto-investor