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by dragonwriter 1142 days ago
> Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to.

All pump-and-dumps have an X.

Having a narrative of how the thing you are pumping will go up is not a difference from other pump-and-dump schemes.
1 comments
smcn 1142 days ago
It definitely is. A pump and dump is a coordinated effort to artificially raise the price of a stock.

Posting technical analysis and/or positive news that encourages people to take a position is not a pump and dump. No more than any financial article that has ever been written.

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dragonwriter 1142 days ago
> A pump and dump is a coordinated effort to artificially raise the price of a stock.

And with what methods are such coordinated efforts carried out? By communicating a narrative intended to convince people that the stock will go up, so that the audience buys it and it does go up.

The narrative is the central element of the pump of a pump and dump.

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smcn 1142 days ago
There is a big difference between a coordinated effort and open source intelligence which is what most people are performing on WSB.
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dragonwriter 1142 days ago
Most pump and dump schemes present themselves as intelligence/analysis; there is no content-based objective differentiation, just intent and good-faith.

But, actually, some of the WSB stuff is openly coordinated strategy, not intelligence, overtly seeking to manipulate enough action to cause an outcome, not providing intelligence/analysis on what os likely to occur without active intervention

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smcn 1142 days ago
None of the successful stuff is coordinating a pump and dump. You may get the odd post where someone does try but it doesn't go anywhere.

> But, actually, some of the WSB stuff is openly coordinated strategy, not intelligence, overtly seeking to manipulate enough action to cause an outcome, not providing intelligence/analysis on what os likely to occur without active intervention

That would not be correct, no. If you're talking about trying to trigger a short squeeze then that is mechanically different from a pump and dump.

A short squeeze does not require the participants to raise the price, it requires a restriction of the publicly available float in order to trap "shorts" and then, when their options expire and they must purchase the shares to satisfy the contract, it creates a massive demand for shares on what is now an illiquid stock and this results in the price rising.

There have been many occasions when they have tried to squeeze a stock but I have not seen one where they have tried to attempt a pump and dump.

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dragontamer 1142 days ago
> None of the successful stuff is coordinating a pump and dump.

Memes are the mechanism to pump.

Selling when everyone else is still meming is the dump. The masses support the prices while you leave and take profits. Its basically a transfer of wealth from apes to the meme-leader (ie: the one who made the meme and pushed it to be popular)

And its 100% blatant. Thats what this whole topic is about: WSB doing a rug-pull on his own community through a cryptocoin.

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