Despite Crypto Bubble Crash, pumping and dumping systems are still common


A glance at "Crypto Twitter" shows that the blockchain industry is oversaturated by speculators who lack financial knowledge. This is the main reason why different communities surrounding a particular cryptocurrency, such as "the XRP army", will do everything in their power to defend their opinions, even when it There is undeniable evidence to contradict them.

With a market full of uneducated investors, some people have used their knowledge to gain popularity by estimating future movements in a given alternative currency. This gave them enough power to create their own private groups and participate in the manipulation of the market.

The infamous confidential Palm Beach group is a case in point. The $ 5,000 subscription group made the headlines again after its main publisher appeared to have implemented one of the cruelest encryption pumping and dumping programs of 2020.

Cryptographic bombers take advantage of lack of regulatory oversight

Teeka Tiwari stole the limelight in the crypto market. The analyst recently recommended that Palm Beach Confidential Group subscribers purchase Tierion (TNT). After its approval, the price of this altcoin soared 155%.

A few days later, however, the sales pressure behind TNT increased dramatically after Teeka told its readers that it had closed its long position.

When Palm Beach Confidential users were informed, Tierion had already lost 40% of its value. And when the landfill was completed, it was reduced by almost 70%.

Tierion US Dollar Price Table

Tierion becomes the industry's latest pumping and dumping system. (Source: TradingView)

Those who rushed to buy TNT, simply because it was recommended by the Palm Beach Confidential Group, may have found a worthless token. In fact, the crypto asset currently has no use cases and its future is quite uncertain.

"TNT has mainly been used on the legacy Chainpoint network, but with regulatory uncertainties surrounding TNT, the team has switched to a new version of Chainpoint that uses Bitcoin Lightning and does NOT use the TNT token" asserted

Santiment Behavioral Analysis Platform.

Although Teeka can be blamed for not doing your research before recommending a token, most of the flaws lie in those who have followed the herd. The irrational behavior of hunting for moving parts can lead to significant losses.

Smart investment thanks to Blockchain technology

What has happened to the Tierion crypto asset shows that many so-called "big analysts" in the industry are trying to take advantage of unconscious investors.

While this does not necessarily apply to everyone, it is important to take everything that is said in a market with little or no regulatory oversight with a grain of salt.

Santiment he pointed that a review of network activity and the growth development of a given cryptographic asset can provide insight into what is going on behind closed doors.

"To accurately see the health of a project as a true candidate (must) ensure that it displays constantly stable (or preferably increasing) levels of daily active addresses, Twitter's growth, development activity rates, the amount of funding from the main holders of the exchanges and the volume of exchanges. If everyone is going up, it's a good sign that you're in an asset with great retention capacity, "said the network information provider.

As the industry continues to mature, more transparency will be offered to investors through the use of blockchain technology. Now it is in the hands of crypto enthusiasts to exercise due diligence to avoid "pumping and emptying" like the one mentioned above.

Featured Image from Unsplash

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