Wash trades were one of our example of price manipulation fraud on January 1:
"Banks Keep European CLO Market Alive by Buying Their Own Product"We saw it in 2008 in venture capital where there would be a "topping off" round to set price before an IPO. we saw it last year in NFT's with the wash trading and the marking-the-close trades and we see it currently in Private Equity with daisy-chain purchases running "valuation" higher and higher.
In fact, it is such a tell on the market that it is probably worth figuring out how to bet against, at minimum, the CLO packagers (their revenue stream dries up) if not the whole ecosystem....
From TheStreet, January 5:
Mark Cuban Warns of Potential New Crypto Scandal and Fraud
The billionaire investor tells TheStreet that a new scandal will soon rock the cryptocurrency industry.
....Cuban Sees a Scandal Tied to Wash Trades
As 2023 begins, the question is whether in this new year the crypto industry will also be marked by scandals.
For the billionaire and cryptocurrency investor Mark Cuban, it's a question of when, not whether.
This new scandal, he says, will appear in the form of the implosion of so-called wash trades, according to him, on the centralized exchanges.
"I think the next possible implosion is the discovery and removal of wash trades on central exchanges," the owner of the Dallas Mavericks told TheStreet in an interview by email. "There are supposedly tens of millions of dollars in trades and liquidity for tokens that have very little utilization. I don't see how they can be that liquid."....
....MUCH MORE
They aren't that liquid. It's a scam as old as quoted prices. The conspirators trade back and forth among themselves to give the appearance of activity/liquidity. This draws the public in and the trap is set.
It's no different in concept from what Joe Kennedy, J.J. Raskob and the gang did with their pool operations in Radio Corporation of America, the tech stock of the day. The 1929 pool had the added refinement of using the NYSE specialist in the stock as the pool manager.
Take that, crypto dudes!
As noted in December 30's "Should We Legalize Market Manipulation for Crypto?""...I believe [it] is the largest pump-n-dump in history..."
RASKOB RADIO POOL REALIZED $5,000,000; Senators Hear Story of One Week ...May 20, 1932 RASKOB RADIO POOL REALIZED $5,000,000; Senators Hear Story of One Week's Operations on an Investment of $12,683,000. 1,493,400 SHARES TRADED Operator Tells of Guiding the Market, Illustrating...
