Blockchain is a new and complex technology, but more and more people are looking to crypto assets or Tokens for a way to improve their financial situation outside of the salary of a conventional job and the low returns and high commissions of brokers or trading instruments. investment funds offered by commercial banks.
Everyone focuses their attention on the potential return, but few are aware of the risk and power that the great whales, the media and even the developers of the tokens or cryptocurrencies have. This is where the concept of PUMP & DUMP comes in.
It is as important to know the project behind the Token ** (T: 1766) ** as who is most interested in the information that is being released.
The biggest example we have with Elon Musk president of Tesla ** (NASDAQ: TSLA) **, Inc. and his insinuations regarding Dogecoin, a cryptoactive that if we analyze it has no intrinsic value but that serves its holders to make money by creating a fever". .
It is true that some projects are interesting like ADA or cyber security projects and even native cryptocurrencies of their own erchangelle such as BNB of binance. This is why the hypothesis is generated that many projects do not need the ordinary financing that large companies take through the sale of shares, but instead they issue tokens, investors would be acquiring a derivative instead of an underlying asset and with that they finance themselves In projects in this sense, we would be talking about the fact that the tokens of companies or projects, far from being a substitute for money, are a substitute for traditional shares.
However, when a new project is launched on the market at a very low price, for example: if you buy the shares of a company at a price of $ 50 and sell it at $ 60, the price change is $ 10 but in reality it would be% 20% on the other hand, if we acquire a share for a cent of a dollar and it rises to 99 cents, the change is 98 cents but in% the price grows by 9800%, imagine an investment in these terms of $ 10,000, we are talking about a profitability close to the 1,000,000 this is what is happening with many new token projects in which many people dream of those who are going to make the new BITCOIN that without really knowing what “BITCOIN” is.
Thinking of something whenever there is demand, the offer does not take long to appear and in the supply there is everything.
the PUMP & DUMP
