Beware of the new type of hype Scam, Pump and Hold. Also hype scams by popular youtubers and how to spot them.
ChainCoin 90% dump and recovery. Keep reading for explanation.
It started with Chaincoin (CHC) on the Cryptopia exchange organized by a group www.highoncoins.com and a bunch of whales (high on coins community may have also been manipulated). They all bought into this coin at a very low price. You can see it on the graph. Then they all proceeded spam every facebook group, youtube channel or forum they could.
This is when I started researching this coin. I could find zero reason for any of the hype. The dev team was basically dead and so was the coin.
The price continued to rise and the spam increased. Whole groups were overrun, every post hijacked and it worked!
They encouraged everyone to help setup BUY walls, a large wall of buy orders so the price would never drop. A good plan. It kept the price from dropping over a sustained period. This is when the whales and people that bought in early make their money. The use these buy walls to cash out. They started with dumping the total amount of CHC by 40%, the buy walls cover most of this but there is a dip so other holders panic and sell out dumping the price further, this is where the whales buy back in. Rinse repeat with the buy walls feeding the whales. A brilliant setup by the Whales. Dumps of 20-40% occur several times but because of the poor charting system on cyptopia they are easily hidden and by the buy walls. Other charts can show 1min intervals such as the picture at the top and it captures the dumps.
Meanwhile the hype continues. At this stage if you got in early and you sold out you would have made 1000% profit or more.
Many people such as myself watching reliable charts are warning of how the scam is operating and it will dump hard soon. This is met with abuse and denial.
Sure enough it dumps hard. I saw 3 single orders placed for 2.3million USD. So there was some massive whales in there. The big dump came at 90% of the total coins dumped but because of the buy orders and peoples greed it mostly recovered, once people realized what just happend CHC has eventually dropped 60% in value and has slowly been coming down. That was a dump of over 30 million dollars, maybe even 40.
Just after the 90% dump and the panic it caused the hype group started spreading a new rumor. "Everyone is selling out and getting into SYNX coin".
This caused a massive spike in SYNX coin followed by big dumps. Again the same thing that was done to Chain coin was repeated on SYNX but it all happened much faster.
When buying a coin you should follow these basic rules. CHC basically only had number 1 and 6 on the list, nothing else and the community was a false community whipped up by hype. The hype often mentioned masternodes and how awesome they are with calculations showing you how much money you can make, but as the coin dumps it will lose all value.
- Community - Does it have a strong community backing the coin that want it to succeed.
- Value - does it provide value and can it produce a product people will pay money/btc for
- Platform - What stage are they are? Do they have something already working or near release?
- Unique - are they the only one doing it and can it easily be reproduced.
- Would you use it and do you believe in it? This is a big one.
- Hype - Is there alot of Hype and internet activity around it like twitter youtube facebook etc
- Research - Research - Research. Can't say this enough this is your best friend. Twitter, youtube, facebook, google etc
- Search for scam hack etc on forums.
- Read the ANN on bitcointalk forums. Check out their slack and telegram accounts as well as the webpage
- Find out everything you can about the development team
- Read the whitepaper or plan and roadmap. It will tell you what the money is for. Careful if they oversell their idea its a warning flag.
Now if you know how this works and you ride the wave and have an exit strategy you can make some serious coin.
A lot of people lost hard on SYNX because it dumped so quickly. They also tried several other masternode coins but people didn't really fall for it again.
It's Over right?
Unfortunately not, it gets worse.
The next falsely hyped coin is SafeExchange (SEC). It actually does get a few more of the things on the list. But there is zero reason for it to blow up now. There was no new news and the dev activity was basically dead. They maybe released a wallet update within the last year but i couldn't confirm. After researching for 5 mins I could tell it was just fake hype.
Of course the devs suddenly pop up when the coin takes off. Again you see heavy buy volume before the false hype is spread.
The price of SEC went up, it is actually a good idea but it is not unique and other coins are well ahead of it and active.
You will notice the hype videos never really give any reason for why the coin is suddenly worth more.
This SEC hype video was made by Etherium Evangelist. He has 7000 followers and likes to gloat whenever he makes a prediction that he is always correct. This is because his followers go out and buy what he says, so it is kind of true. I have followed him and his videos are usually not too bad. But this one gave no reasons to why it will go up and his prediction on price was way off. He predicts 2000% increase by the end of the month. So far is has barely doubled in price and is trending back down. His reasons for it going up is... "his ear to the ground, active dev and great platform". None of this is true. There is no platform or working product.
Next from the same guy we have a prediction on Dope Coin (DOPE) will go up 600-1000%. Again no news and no reason why.
He states in his video he got a tip that it will go up. I call bullshit. After researching I found no reason for it to go up.
What I did find is a high volume of purchases of DOPE coin right before video and other hype being released. Dope coin is a good one to hype. Because if one marijuana coin goes up in value all of them seem to follow. Again I noticed a lot of volume in those coins right before the hype is released.
Then you see dumping hard again on all marijuana coins. You can see they are trending back down to what they were. Dope coin only went up around 200% and is basically back to where it started.
I can't trust this guy anymore. He does not give any credible reasons. He uses hot chicks in the first one second of his videos to attract clicks as well, pretty sad.
Looking back at some of the history of his video there is a dump trend. He is just more obvious now because he is promoting shitcoins.
There is many others involved in this, I only target this guy because of his last two videos were spammed to the groups I belong to as proof they were about to rocket.
You can take advantage of these by getting in early and getting our early. Do not buy into the buy and hold crap. That is designed to lock in your money and give the whales longer to milk more people that get in late.
I have lost a lot of respect for many of the so called experts that got behind any of these coins without exposing the dangers. Sure get behind them and ride the wave but inform people of why it is going up and what is gonna happen next.
This was the perfect time to do this. All coins are at all time lows and dropping so inexperienced traders see a single coin going up and don't want to miss out so they all jump on board without doing any research.
I personally had zero stake in any of the coins. I spent around 2 days watching this shit show and worked out half way through the first day what they were doing. When I saw the spam about moving to SYNX I tried a little experiment and dropped $100 on SYNX and sold it 20 mins later and doubled my money.
I got in early and got out. I probably could have made more but I was just doing an experiment.
I really tried hard to warn people, the smart ones sat back and listened and didn't get involved. The supporter just abused those that said anything.
The even smarter people had bought into the hype heard what people were saying and got out at it's peak. Nicely done.
A few people would have made a lot of money, but in some of the groups I was in I heard a poster say "I'm grown man and I sat on my bed and cried all day". I don't want to be apart of that. I would rather make money on a platform and coin that does something awesome and delivers true value.
This post is not to say I told you so or anything like that. It is a warning. It is actually to early to say where those coins will go. Maybe they will recover and go to the MOON.
Here is one of them calling me a troll near when this all started for asking him to point out where the value of the coin is. This was when the coin was at 200% or $1 or something like that. I first started looking at this coin at $0.50.
