this post was submitted on 07 Dec 2024
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This doesn't even sound like a scam though.
He bought some tokens at low price, waited for the price to go up, sold them and that made the price drop. Oh well. Sounds like a normal goal, buy low, sell high.
So... basically just some people got mad because they were acting too quickly with no thinking involved, and others were still able to earn on it after that.
If I understand that right, this whole thing is just "I stupidly put my money into your son's untrustworthy currency and lost money. It's all his fault!"
From how it's (badly phrased) it sounds like he made the coins and then "bought" 5% of all of them (from himself) to make it look like there were people buying it, then marketed it out for others to also buy.
Similar idea behind the whole GameStop stocks pump and dump happened. Put in some money to give the illusion that it's hot and in demand, and then cash out when enough have joined.
The issue isn't that he bought low and sold high, but that he bought his own property from himself to give the illusion that it had value and demand that didn't really exist. And if he hid the fact that he was the purchaser of his own coins, this would make it even more shady. He didn't want it to be successful, just to artificially inflate its value long enough to make a good sum of money and then run.
Think like buying a junker car and pouring sawdust in the engine to hide the clanking noise so you can sell it for more than it's worth. You have artificially made it more valuable in the short term to make money and left the fall to the next guy.
Is it illegal? As this is crypto, not technically due to lack of regulation.
Why would you need to buy your own crypto? The only purpose of these trades is to mislead others.
You already own your own crypto though, without buying it.
when you buy from yourself instead of from a different market participant that is considered wash trading and it is fraud
At the point where the tokens were supposedly worth $3,000,000, the liquidity could probably only support actual sales of like $3.
paper profits