Recent events have shown that inaccurate information, news that is misrepresented, and other misinformation, intentional and unintentional, can affect the prices of Cryptocurrencies in huge ways. The market is already volatile and it is very risky business (and, in GainingSteem.Com's opinion, unethical business) to try to utilize/spread Fake News as a means of affecting markets in a substantial way. One huge examples of the last few weeks is:
This is a PRIME example of how virality with news about popular currencies can create massive, artificial pumps that are destined for a short life once the inaccuracy is revealed for what it is. Now, IOTA is a great Crypto, one which I think will grow HUGE as time goes on and has even continued to rise significantly today after the drop caused by the information of the false partnership reports coming to light, but its rises should be because of accurate positive information, the emphasis being on accurate. These companies are talking with IOTA, but it is a misrepresentation to say they have partnerships with IOTA, because that isn't the case. Unknowing investors who thought that the pump was legitimate and sustainable lost money because of the drop that occurred once the truth came out.
You could argue that if they just held/continue to hold now, they'll be fine, but once the truth comes out they get put in a position where they need to navigate a News Environment that they shouldn't have had to navigate to begin with which may or may not lead to a decision to exit their position. With real-time feedback regarding current, viral news, Boolean aims to inform users of News Sites/Sources/Articles that have questionable backing information, have had questionable records of accuracy, etc. This will allow investors and consumers to make more fully informed decisions regarding their purchases and investments!
GainingSteem.Com is currently carrying out its ICO for Boolean, selling 100 Booleancoins for $10.00 via PayPal, or with the conversion rate of 1 ETH for 3000 Booleancoins. A Project Of GainingSteem.Com, This Decentralized App On The Ethereum Blockchain's Constantly Learning Web Crawlers will gather information across all corners of the web and interpret and connect the information they find, will allow fake news to be flagged and the information disseminated among subscribers before it has effects as profound as causing alternative legislation to be passed, elections to be lost or won based on falsities, and many other use cases. Our Proprietary Boolean Prioritization Model Identifies, Categorizes, And Ranks Priority And Risk Of Any Given News Story/Online Content Piece.
I'll admit it, I bought some IOTA during the spike... But in the long run I think it's still a win for the people holding IOTA.. I had never heard of them before it and now it's a matter of time before they get added to some major exchanges.
Yeah, I definitely am of the opinion that it is a long-term winner. I can't imagine a blockchain-integrated world where it isn't integrated into the Internet of Things. :)
People will always try to destroy something they dont understand.
While I realize this is not the point of your story it does bring up an interesting tactic I have been using to make money on pumps without any ethical issues. I own a large basket of currencies and have sell orders on all of them that is well above current prices. That way when a pump hits I profit. Sure it caps gains if there is a legit run on a currency but overall it seems to be working well for me. If a sell order triggers I just put a buy order in back at the price before the run.
Yeah, that's actually a really great tactical strategy in Crypto right now, since a LOT of crypto is going to have it's day and the overall market is fairly bullish because of the recent frenzy! I'm glad you're having success with that strategy! :)
Great one @biddle.
You are right, Fake News Can Hugely Affect The Cryptocurrency Markets.
We have to be more conscious.
Great post, @biddle. Something I believe people need to read. =)
Nice and informative post.