A Vicious Market Manipulation Happened In the Past 24 Hours

A Vicious Market Manipulation Happened In the Past 24 Hours, by Mike Swanson.

No one is going to tell you today how market manipulations really happen, because they are illegal, but at one time they were legal and people talked about what they did. …

Before the SEC was founded stock manipulation was actually legal and there existed what were called “stock pools” that engaged in vicious manipulation. …

One of the biggest investing publications of the 1920’s and 1930’s was a journal called The Magazine of Wall Street edited by Richard Wyckoff. I got a hold of a couple of old issues and this one from 1925 details right out in the open how stock pools operated. If you read this issue you’ll find out exactly how manipulation happens. …

Summary of how it works:

A stock pool operated when a small block of insiders owned a large amount of shares and then took a small number of shares and sold them back and forth to each other at successively higher prices to “walk the stock up” or “mark it up.”

Such a thing is totally illegal to do today and with the data the exchanges have on trades anyone trying to do such a thing can easily come under SEC examination.

Bitcoin:

But there is no such regulation for Bitcoin.

If Congress or regulators would do an investigation into Bitcoin and crypto currencies I have no doubt that they would discover the existence of manipulation pools probably connected to some of the Bitcoin “whales.” …

Example:

Look at this new “ICO” crypto currency that started to trade this weekend. It opened up with a market cap of just a few million and in hours went up to be worth over a billion and a half dollars. …

It got marked up! That’s how a pool operates! If this was a stock it would be halted and the people would probably end up in jail.

This is just a textbook example of market manipulation and in time the entire crypto market will likely be seen as a rigged market as such things have happened all over crypto world.

Crypto currencies are not created by people looking to replace the US dollar or displace central banks, but by people looking to rip off the masses. [Initial coin offerings] are junk.