Small things can have big consequences. A few weeks ago, I was suddenly a very rich man, only to lose everything in half an hour. I lost over €43 million, and even though I realize the money was never really there, it still hurts. It got me thinking about crypto and how this could have happened. Could I, or should I, really trust these digital currencies? Who is managing all this value anyway?
Big questions, and the answers were not easy to find. I investigated further and decided to test it myself: I’m going to create my own crypto!
Step 1: Acquire an asset for yourself.
Step 2: Make the asset attractive to others.
Step 3: Wait for others to buy in, and the value goes up.
Step 4: Sell your holdings.
Step 5: Profit for you, losses for others.
It is unethical and illegal to make money through Pump and Dump schemes, but this does not stop the rich and famous from doing it. The world’s richest man has done it at least twice. He mentioned that ‘Dogecoins’ were a great investment, then sold his holdings a couple of weeks later. He also announced that Tesla would accept Bitcoin for car payments, causing the value to surge. He then sold his own coins and canceled the acceptance of crypto for payments. A lot of profit was gained by Musk, while the losses were borne by others.
Tips for Identifying Schemes:
– Be cautious of sudden, unexplained price increases. (Like now)
– Verify information from multiple reliable sources.
– Avoid investments that seem too good to be true. (Like now)
Musk seems to favor the ‘Pump and Dump’ approach because, with a large enough following, it is easy money. A lot of money. His now friend Trump has one defining characteristic: for Trump, money is the most important thing. Money is the only thing that matters. Together, they could be preparing the biggest pump and dump the world has ever seen. The richest person in the world, with the most powerful person. Together, they are now pumping crypto a lot. The value is going up like a SpaceX rocket. The question now is simple: when is the dump coming, and how much damage will it do?
Step 1: Acquire an asset for yourself.