Unethical Mindset and Market Manipulation - The search for the equilibrium.
Stock market manipulation is always on the top if we talk about market manipulation in general. Artificially affecting the price is a long practice in every market; from stock to crypto, we can see the same practice.
I believe we would come to agree on this point that it's not ethical at all. On the other hand, it's true that when the price serge in any market, there are some beneficiaries, marginal level assignees, or recipients who also get benefited from the impact. The truth is, if we are benefited we think it's okay but when we lose money, we raise our voices.
The genuine question is probably not about if it's ethical or not but rather about the equilibrium point.
Manipulation is illegal in most cases, but it can be difficult for regulators and other authorities to detect and prove. It's unethical in general because the aim of manipulation is to mislead other market participants. However, it's true that manipulating a larger market is not easy and in most cases nearly impossible. But if the liquidity is low then it's highly unlikely that marketers will not try to manipulate it.
I am not taking any names for reasons but if you look at even some of the Hive tokens and sub-projects then it would be clear.
Unfortunately, the consequences of manipulation are larger but hard to notice.
Because in most cases, we move on without bothering to raise our voices against such unethical practices. You will find the same people investing their money in other projects run by the same manipulator. There are thousands of examples. One is the click-to-earn type of site.
One major impact is a deduction in investment in general after manipulation and market crash, not optimized resource allocation, and finally decrease in economic growth. This hampers the whole market in general. We have seen how people who lose a high amount in dogecoin left the market.
To be honest, there will always be an unethical practice and window to do so, even if we ensure the best security and regulation. So as market participants, we can't do much but rather raise our voices so the authority can take some action against these practices.
There must be some regulation against unnatural ways to increase the price. Nowadays, many government agencies, as well as private group, is trying to build a concrete system to detect manipulation and establish a barrier to protect the general market participants. If we fail to do so in the future, then crypto and the stock market will never be able to gain the utmost trust and be the major sector of investment.
It's high time to pull a lash on this white-collar crime, otherwise, these types of manipulation are enough to slow down the whole economy.
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