The US Futures Trading Commission (CFTC) issued a warning warning investors about the possibility of becoming a victim of crypto-currency schemes.
"Clients should not buy virtual currencies, digital coins or tokens based on tips in social networks or focusing on sudden price volatility. Careful study of the virtual currencies, digital coins and tokens of the company or organization behind them is a necessary procedure for any investor or trader so that they can separate advertising from standing offers ", – said in a warning from the US Futures Trading Commission.
The warning details how trader teams organize pump and dump schemes designed to manipulate the price of individual crypto-currencies, often using fraudulent tactics such as distributing inaccurate or misleading news messages on social networks.
The warning also says that under current US law, the CFTC can not directly oppose spot markets. Nevertheless, they have the authority to investigate fraud and market manipulation, these powers also apply to crypto-exchange exchanges.
Author: Andrey, analyst Freedman Club Crypto News
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