Organized attacks on the stock market such as Pump & Dump have become more frequent in investment-oriented Telegram channels. About informs Official Telegram channel of the Bank of Russia. In Pump & Dump, investors create fictitious demand to boost the price of cheap stocks and then sell them at a large profit margin.
“As a rule, regulators of such schemes use large channels dedicated to financial matters, where they first exaggerate some paper and accelerate its price on the stock market, and then sharply reduce the asset. In these channels, the Bank of Russia urges subscribers-private investors to act together and coordinate such actions to “move” the price,” said the Bank of Russia.
According to the regulator, this plan is dangerous for investors who are not among the organizers of the plans. Organizers choose the “reset” time for the greatest benefit, and third-party investors are not aware of the “X” hour. Thus, after the reset by the regulators, third-party investors are left with depreciated shares and losses in their hands.
The Bank of Russia finds this practice unfair and warns that participation in Pump & Dump programs could be viewed as “trading under a preliminary agreement” with the aim of inflating share prices and manipulating the market.
Formerly socialbites.ca Wrote It’s about a new scam scheme that threatens Telegram and WhatsApp users to lose money.