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Wolf’s Blood is Poisonous to a Vampire

Photo by Jordon Conner on Unsplash

In an episode of the Netflix series “Being Human (a dark drama where a werewolf, a vampire, and a ghost share a house in Boston, MA),” a vampire (who only eats blood [which intoxicates him], but not from live people) gets hungry except a person trying to help the ghost the wolf are the only thing around. After a minute the wolf gives in and lets the vampire eat his blood. The vampire bites, but the blood is too good, so he stops. He goes again, but, again stops. He gets up, walks around, and contemplates how good this “meal” is. Just as soon as he decides to go in for the “kill,” he begins to heave and finally throws up the blood. The vampire then begins to convulse violently, and more, darker blood begins to spew from his coughs.

Photo by Cristian Newman on Unsplash

If you know anything about the vampire/werewolf phenomenon, vampires and werewolves are not friends. The werewolf, unknowingly as they are friends in the show, must have been poisonous to the vampire by nature. And that’s life, everything has its sting. So must be the same as when fake news caused a trader, or a group of trader’s, to be stuck in false breakouts.

Example:

A nameless cryptocurrency falsely sells itself as having made a big deal. Some traders feel it’s the deal that sends the currency to the big leagues, and start hoarding up the tokens to sell them high (scalping). Soon sellers, that are also holders, switch over to the side of the scalpers selling their tokens at the higher rate and buying them back when the volume dips with a subsequent price drop (I am not talking about a pump and dump, a scenario like this where the heights and dips are so perfectly large, but an imperfect parabolic growth in their differences). Later the price stabilizes at a lower price than when it started and recent buyers set their price with the trend.

The next day, the currency breaks news that the news was false. The traders who set their sell prices high with the trend are either holding the bag or selling at a loss. More experienced traders who were aware worked the trend right they should have made some profit and the loss might not hurt them. That is if they caught it before the news broke.

A wolf is not a fox. photo by Kyle Glenn on Unsplash

The fake news would have had a negative effect on the price. This could be good or bad for the currency. An institutional buyer might have liked the project from the news and uncharacteristically offered to take the place of the deal as they invest in a company that can use the service.

Okay stop. The offer would be uncharacteristic for the institutional investor. The currency might have made a short term profit. But it’s ill-gotten gain. If there’s no institutional investor, the token buyers might get disenfranchised with the development of things and get out. Worse could happen, the Securities & Exchange Commission frowns on insider trading. If an investor felt so perturbed, one could report the currency. However, most traders don’t make waves.

photo” by Ehimetalor Unuabona on Unsplash

The currency would lose volume, and there goes the potential investors, wait for it, signed investors. Anything could go wrong, and it’s all because of fake news. The prerogatory “vampire of crypto boulevard” would lose the companies company over a short-term gain.

A well-healed trader will have developed a risk management strategy for events like this, which are common in traditional and crypto markets. They use tools like trailing stop and other stop loss methods to prevent such detriment, mind the slippage.

In short, just because rock glitters doesn’t make it gold. The story was just an example. Cryptocurrencies take a long time from inception to market. Even if a major corporation signs on to the project, it could be years before the project hits the market.

The ICO is another place were these “vampires” take to the werewolves. They sell the project big with no intent to actually open the project like the Steven Segall (actor) backed Bitcoiin (yes, two i’s). They are still under investigation by regulatory agencies around the world. These same regulatory agencies announced large-scale investigations into the entire cryptocurrency industry. ICOs, cryptocurrency in general can stand a good cleaning like regulation. Thankfully, this is happening both regulation-wise and industrially.

Photo by Claudia Soraya on Unsplash

Some companies have taken to the “reverse ICO.” A tactic where a project hits the market before it goes into the token phase. They do it to become an established business before going into the cryptocurrency to give the token a reputation first. Locktrip (LOC) and a few others (Gastro Adviser, Westland Storage, and AQWIRE notably) have used this strategy. The recent ICO for LOC had the reputation of an established travel aid with advertisements of more than 100,000 hotels and other lodgings.

These risk management systems keep cryptocurrency as a safe method of transfer and investment. If it were not safe, and just “fake” safe, none of us would have gotten our money from it. It’s a matter of survival to the industry to have regulated, safe transfer and investment. Who would stick around to lose money? And, as we already know who would show up?

Articles about cryptocurrency. The ins and outs of collective financial movements and actions, along with the ideas, plans, and opinions in cryptocurrency.

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Jake Davis

Jake Davis

Owner of @Medium Publications: @WewoChro & @CoinOfferings

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