The Game of Pump and Dump - Fintwit Pump and Dump Schemes
Does PEPE the frog fall into this category?
WATCH the complete Episode at Confessions of a Market Maker
Hey everyone,
In this episode, we dive into the recent SEC charges against the Atlas Trading Discord group for a $100 million pump and dump scheme. JJ & Ray shares his experience with one of the stocks that the group was pumping, WISH, and how he knew it was a dilution pig. We discuss the gullibility of people and how scammers take advantage of it. We also speculate about the timing of the SEC crackdown on the group and wonder if it was because they needed a win under their belt after the FTX scandal.
The internet has made it easier for scammers to operate, and people need to be more cautious. We provide insights into the dangers of pump and dump schemes and the importance of being vigilant in the stock market. JJ expresses his frustration with the SEC's approach to taking down fraudulent schemes and emphasizes the importance of treating trading as a business and developing one's own strategies.
We stress the need for structure and discipline in trading and caution against falling for scams. We also give a shoutout to funding programs like Apex Trader and Top Step Funding, which provide structure and discipline for traders. JJ compares these programs to working on a trade desk, where compliance officers and credit officers keep traders in check.
We discuss whether the Atlas Trading group will face fines or jail time for their actions. JJ explains that civil penalties are likely, but criminal charges could also be on the table, especially if the group was involved in wash trading. JJ warns that it's not a good idea to try and deceive the authorities in this climate.
Finally, we provide tips on how to spot fraudsters like the Atlas Trading group. JJ emphasizes the importance of disclosure and recommends that people look for information on where the shares came from and whether the person recommending the investment has been compensated with free stock. He also warns against illegal practices like issuing stock for investor relations purposes.
As always, we hope you enjoy this episode and learn something new. Don't forget to tune in and stay safe out there!
"JJ warns that it's not a good idea to try and deceive the authorities in this climate."
WATCH the complete Episode at Confessions of a Market Maker
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