Summary
A teenage boy created and released three memecoins, earning over $50,000 by selling his holdings before the price crashed (“soft rug pull”).
The backlash was swift, with the boy and his family doxed and facing threats from angry traders.
While the legality of such actions is unclear, the incident highlights the risks and ethical dilemmas in the unregulated memecoin market.
Since financial institutions will still own most of it, it will still be the same, except instead of the central bank doing it publicly, random hedge funds will be pumping and dumping randomly, and we can all go “the market works in mysterious ways”.
If financial institutions own most of it and aren’t regulated accordingly, what you say seems to hold true.
As soon as there’s sufficient regulation in place or financial institutions don’t own most of it, it won’t look so bleak.
I mean they already do own most of it, and crypto proponents specifically like it because it is unregulated.
Wouldn’t be crypto if the Fed would have a say in its value.
Are you saying that financial institutions own most of all crypto in existence or do you mean Bitcoin specifically?
Financial institutions own most of everything in existence at this point, but Bitcoin specifically I’m sure they own enough for some nice pump and dumps.
It’s not like it will be on their official books.
Yeah, that may very well be the case and it’s hard to verify or falsify it.