Pump and dump plans have become the hot topic of recent days. Plans that involve groups of investors to coordinate their purchases and then sell, come to the fore with projects such as XRP and Dogecoin.
Ripple’s XRP has dropped by 42% in the past 24 hours, after experiencing significant increases in the past three days. Behind this is an assumed group of 295,000 Telegram users. The group raised the price of the currency to very high levels (pump), despite the SEC’s ongoing lawsuit against the project. Prices increased by more than 150% over the weekend.
We can say that the sudden increase has attracted novice investors like Gene Simmons, the lead singer of Kiss, who unfortunately bought the pump.
Dogecoin investors faced a similar fate yesterday (Gene Simmons announced that Doge also bought it), with the joke token dropping 13.6% last day. After reaching highs of $ 0.037 on Sunday, the project has been in a steady decline, causing losses two days in a row. In addition to the price, the trade volume also fell 40%, a strong indication that pumpers are leaving the event. Of course, in doing so, they left Simmons and other investors behind with an ever-decreasing crypto bag.
However, the situation in the crypto markets was not bad at all. Thanks to strong performances of Ethereum, 6.4%, Cardano, 20% and Uniswap 5%, the total market cap increased 1.2% and settled above the $ 1 trillion mark.
It’s been a strange seven days for Wall Street and the broader global markets. After a tough week for investors, yesterday we saw most of the January gains almost completely gone.
The good news is associated with different reasons. One of the key factors seems to be the US government announcing that the economic recovery will be faster than previously thought, with employment reaching pre-pandemic levels by the summer. However, some worry that this is a bubble. The growing number of volatility around stocks, commodities and cryptocurrencies, thanks to the WallStreetBets phenomenon, has led Bank of America strategists to make comparisons between the dot-com bubble today and around 2000.
Considering all these developments in a short period of time, it is useful for investors who seek to enter the stock markets to follow the advice of Gene Simmons: