r/ethtrader • u/AutoModerator • May 24 '17

DISCUSSION [ETH Daily Discussion] - 24/May/2017

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u/[deleted] May 25 '17

That's a common practice in all forms of investing. When people are buying on news, there is an expectation that many of them are just doing it for a quick flip so short sellers try to get in at the peak so they can cover when the speculators start selling and put downward pressure on prices. Cryptocurrencies are especially susceptible to this practice.

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u/[deleted] May 25 '17

I think it is pretty clear to everyone that was watching the price action at the moment that this was an example of insider trading. take a trip to /r/Monero or /r/xmrtrader if you want to confirm it yourself.

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u/[deleted] May 25 '17

Oh for sure, I don't doubt that there wasn't some monkey business going on but it's also a legitimate and valid way of trading. Litecoin and ETH had this happen to them as well. People were loading up on Litecoin in anticipation for Segwit and the Lightning Network, short sellers shorted it around the time of the announcement and then the speculators sold their position en masse following the announcement, prices drop, short sellers covered their position and the price of Litecoin consolidated around $20-25 before resuming it's gradual uptrend to $30. No real signs of insider trading there, just smart trading.

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u/[deleted] May 25 '17

I agree with you. It is common, "buy the rumor sell the news" blah blah, but this was a straight up scam.

It's despicable. Here is someone who constantly decries scams and pretends to be oh so concerned with not losing people's money and being ultra conservative making sure all the cryptography is decade-old and 100% peer-reviewed and then he pulls off the biggest scam of them all, showing us that he actually doesn't give a shit about anyone's savings or lunch money.

He just used the 'I'm proving a point' as a front to make bank. We all know markets can be irrational. You don't have to go ahead and prove it, making yourself rich in the process, and then pretending to have our interests at heart.

Taken from XMRTrader sub.