This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.I went on a rant last week about exchanges throwing caution to the wind when it comes to listing assets. Today I have a new gripe - desperate news sources. Major media outlets are perpetually in a race to be the first to post breaking news, and crypto content is no exception. The reason is obvious - the source to report a major announcement brings in the most traffic, attention and advertising dollars. The downsides of this behavior can be catastrophic.Yesterday morning, GlobeNewswire shared an announcement that Walmart was beginning to accept Litecoin as a payment option. The price of Litecoin and Bitcoin both rose rapidly, on the news that one of the world's largest retailers was adopting cryptocurrency.Media outlets from CNBC to Reuters quickly jumped on the fake news, spinning the story to their followers. The problem? It was all fake. The original article included a broken web link, 0 quotes from the CEO, a fake linked email, no mention of an SEC registration or filing, and the original publisher wasn't even the regular company that shares Walmart’s news. There were endless red flags for anyone willing to do 15 seconds of due diligence.The story does not end there. As the fake news snowballed, we saw fabricated quotes from the CEO of Walmart and, for the cherry on top - the Litecoin Foundation's official Twitter account shared the news. Wow.As expected, the price of Litecoin shot up to $231 from $173 - a 34% increase in less than 30 minutes. In the following 30 minutes, after every major news outlet publicly posted the news, the price dumped right back to where it was, punishing everyone that bought the news on the way up, and likely rewarding those that instigated the event.Someone (or some group) likely made a massive amount of money at the expense of others. The news was well-timed, hitting during the early business hours of Monday morning in the US. It has been reported that government agencies are already investigating the matter, trying to find anyone who may have bought Litecoin immediately before the event.Despite the craziness, there are a few practical takeaways from the event. First and foremost, we have to look out for ourselves. Anytime you are buying an asset right as news breaks, you need to triple check the veracity of the news. This isn't the first time we have seen ridiculous claims like this circulate around major crypto outlets. Second, media outlets need to do a better job of reporting. With every major announcement of a Bitcoin fund, purchase, or acceptance, I am always looking for the SEC filing on the official government site. It is as easy as searching “SEC” and a few keywords from the news. This is the fastest way to verify if something is real.Lastly, this story coincides well with a recent rant I made about exchanges throwing caution to the wind. I think regulation is coming. Manipulation happens in other markets, but crypto is in the regulatory hot seat and this is more ammunition for regulators to use against us. Exchanges and media outlets doing everything they can to make money and increase clicks will end poorly. It’s likely to get worse as the bull run picks up and incentives increase, but the music won't play forever. Regulators are watching our every move, leading me to believe that the worse we act, the harder the hammer will inevitably come down.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COIn This Issue:Be Careful Trading On NewsBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsMicroStrategy Continues Dollar Cost AveragingAnother Mining Stock Goes PublicThe Wolf Of All Streets Podcast Ft. Edan YagoMy Recommended Platforms And Tools
The Wolf Den #328 - Be Careful Trading On News
The Wolf Den #328 - Be Careful Trading On…
The Wolf Den #328 - Be Careful Trading On News
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.I went on a rant last week about exchanges throwing caution to the wind when it comes to listing assets. Today I have a new gripe - desperate news sources. Major media outlets are perpetually in a race to be the first to post breaking news, and crypto content is no exception. The reason is obvious - the source to report a major announcement brings in the most traffic, attention and advertising dollars. The downsides of this behavior can be catastrophic.Yesterday morning, GlobeNewswire shared an announcement that Walmart was beginning to accept Litecoin as a payment option. The price of Litecoin and Bitcoin both rose rapidly, on the news that one of the world's largest retailers was adopting cryptocurrency.Media outlets from CNBC to Reuters quickly jumped on the fake news, spinning the story to their followers. The problem? It was all fake. The original article included a broken web link, 0 quotes from the CEO, a fake linked email, no mention of an SEC registration or filing, and the original publisher wasn't even the regular company that shares Walmart’s news. There were endless red flags for anyone willing to do 15 seconds of due diligence.The story does not end there. As the fake news snowballed, we saw fabricated quotes from the CEO of Walmart and, for the cherry on top - the Litecoin Foundation's official Twitter account shared the news. Wow.As expected, the price of Litecoin shot up to $231 from $173 - a 34% increase in less than 30 minutes. In the following 30 minutes, after every major news outlet publicly posted the news, the price dumped right back to where it was, punishing everyone that bought the news on the way up, and likely rewarding those that instigated the event.Someone (or some group) likely made a massive amount of money at the expense of others. The news was well-timed, hitting during the early business hours of Monday morning in the US. It has been reported that government agencies are already investigating the matter, trying to find anyone who may have bought Litecoin immediately before the event.Despite the craziness, there are a few practical takeaways from the event. First and foremost, we have to look out for ourselves. Anytime you are buying an asset right as news breaks, you need to triple check the veracity of the news. This isn't the first time we have seen ridiculous claims like this circulate around major crypto outlets. Second, media outlets need to do a better job of reporting. With every major announcement of a Bitcoin fund, purchase, or acceptance, I am always looking for the SEC filing on the official government site. It is as easy as searching “SEC” and a few keywords from the news. This is the fastest way to verify if something is real.Lastly, this story coincides well with a recent rant I made about exchanges throwing caution to the wind. I think regulation is coming. Manipulation happens in other markets, but crypto is in the regulatory hot seat and this is more ammunition for regulators to use against us. Exchanges and media outlets doing everything they can to make money and increase clicks will end poorly. It’s likely to get worse as the bull run picks up and incentives increase, but the music won't play forever. Regulators are watching our every move, leading me to believe that the worse we act, the harder the hammer will inevitably come down.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COIn This Issue:Be Careful Trading On NewsBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsMicroStrategy Continues Dollar Cost AveragingAnother Mining Stock Goes PublicThe Wolf Of All Streets Podcast Ft. Edan YagoMy Recommended Platforms And Tools