Originally Posted:Publish0x
Loom is a cryptocurrency that is part of the loom network, a platform that allows you to create decentralized applications (dApps) based on blockchain technology. It is characterized by its high scalability, security and speed, which makes it an attractive option for dApp developers and users.
The Loom Network works as a layer 2 on top of the Ethereum blockchain, meaning it connects to the Ethereum mainnet and takes advantage of its benefits, but also offers proprietary solutions to improve performance and reduce costs.
Loom has experienced spectacular growth in recent months, multiplying its value by more than 8 1/2 times in just 30 days. Its price, at the time of writing this article, is around $0.34 dollars, which represents an approximate increase of 878% in this period (😀😀 if my calculations were correct 😀😀).
However, this meteoric rise could be the result of market manipulation known as pump and dump, a fraudulent strategy that consists of artificially inflating the price of an asset using false or misleading information, then selling it when the price has risen and causing an abrupt fall.
Pump and dump schemes are very common among low-capitalization and low-liquidity cryptocurrencies, as they are easier to move with relatively small amounts of money. Scammers often use social media, forums, emails or websites to spread rumors or fake news about the potential of a cryptocurrency, creating anticipation and fear of missing out (FOMO) among novice or unsuspecting investors.
These investors jump into buying the cryptocurrency without doing prior research, which causes its price to skyrocket. Scammers take advantage of this moment to sell their coins at a price much higher than what they bought them for, making huge profits. By exiting the market, they cause a drop in price that leaves buyers with considerable losses that are difficult to recover.
So is Loom a victim of a pump and dump? There is no definitive answer to this question, but there are some signs that could lead one to suspect that Loom is being pumped and dumped. For example:
📌 The lack of solid fundamentals to support the price increase. Although Loom has an interesting and promising project, there has been no relevant announcement or significant news that justifies the huge jump in value in such a short time (at least that I have found).
📌 High volatility and sudden price swings. Loom has shown a very pronounced bullish trend, but has also suffered sudden declines and strong corrections. This could indicate that there is a lot of speculation and a lack of stability in the market.
📌 The presence of organized groups to pump the currency. On some digital platforms such as Telegram, Reddit or Discord, groups dedicated to coordinating massive Loom purchases have been created in order to drive up its price and attract more investors. These groups usually have leaders or administrators who buy the currency before announcing it and sell it when everyone else invests, thus making a profit at the expense of others.
As a principle I would advise not investing in Loom, in my very particular case, just as an example (because you do what I say but not what I do), I have an open position in Short risk calculated with StopLoss at $0.396. Although there is a high probability of a fall, I made the mistake of risking trying to anticipate the movement so I entered a very advanced position, we will see what happens.
I always recommend to anyone who is interested in investing in cryptocurrencies or any other asset, that they should take into account some tips to avoid falling into a pump and dump scheme, and although I repeat these in many articles, it is worth remembering them:
📌 Do your own research, don't trust what others tell you without verifying it for yourself. Find information about the project, the team, partners, progress, problems, etc. Compare different sources and contrast the data.
📌 Do not invest more than you can afford to lose, cryptocurrencies are very volatile and risky assets, which can offer great benefits but also great losses. Don't put your assets or financial stability at risk for a promise of quick and easy profit.
📌 Don't get carried away by FOMO, don't buy a cryptocurrency just because you see its price going up a lot and you're afraid of missing out. It may already be too late and the price may drop as soon as you enter. Be patient and wait for a favorable situation to enter the market.
📌 Establish an investment plan, define your objectives, your strategy, your budget, your deadline and your limits. Don't get carried away by emotions and follow your plan. Adjust your plan if necessary, but always with judgment and prudence.
📌 Diversify your portfolio, don't invest all your money in a single cryptocurrency or a single type of asset. Distribute your capital among different options that have growth potential and risk according to your investor profile. This will reduce the impact of possible losses and increase the chances of making profits.
As the proverb that I often use says: "Trading is the most difficult way to make easy money", to which I must also add that cryptocurrency trading is not for everyone, only you, an investor or potential investor, can Know what your possibilities are and how far you are capable of going.
TOOLS, PLATFORMS & APPLICATIONS
💲 Bulb, Publish0x - Earn daily Crypto, NTFs or Money for reading or writing articles and interacting with publications.
💲 AddmeFast - Earn daily Crypto. Promote and increase the sources of traffic, visibility, reach and reputation of your social networks.
💲 Bitrefill - Living with crypto, a philosophy of financial freedom. Travel, play, eat and live with BTC.
💲 QuantFury (Invite Code: JRRU2593) - Trading - Join using my invite code: JRRU2593 and we will both receive a free share like AAPL or UBER, or crypto like BTC or ETH (up to $250). Trade and invest with no commissions or borrowing fees at real-time spot prices from the NYSE, Nasdaq, CME, Bats, Binance and Coinbase exchanges. With a good marketing management you have the possibility of obtaining passive profits without operating in the market.
💲 StormGain - Trading - They can start without investment, capital is acquired for free with the Bitcoin Cloud Miner.
💲 BingX - Trading - Called "The People's Exchange", it places a strong emphasis on social trading and offers its clients extensive features: new user rewards, demo account, high leverage, spot trading, standard and perpetual futures, grid trading, copy feed , etc.
💲 CoinEX, KuCoin - Trading - They offer different bonuses.
💲 Bitcoin Spark - ICO - Initial Coin Offerings.
Author's Note: The opinion expressed here is not investment advice, is provided for informational purposes only, and reflects the opinion of the author only. I do not promote, endorse or recommend any particular investment. Investments may not be right for everyone. Every investment in the market and every trade you make involves risk, so you should always do your own research before making any decision. I do not recommend investing money that you cannot afford to chair, as you could lose the entire amount invested.
💖💖💖 Contribute To The Author 💖💖💖
You must be logged in to post a comment.