If you’re starting to mess around with various Crypto-Currencies no doubt you’ve stumbled across the various exchanges and the absolute lengths people will go to motivate you to sell low, or buy high – it’s the Wild West out there. There is no oversight, no government control (not that there is in the actual financial worlds, is there?)Traders will go to Hell and back to pump up whatever currency they are in in order to dump it on you.
If you’ve spent any time at all watching the world famous Troll Box at BTE-C, you’ve no doubt heard of Fontas and his legendary pumps. Revered by many, hated by most, the guy is an absolute legend around there. I haven’t been around long enough to know why, or understand how he’s accumulated such a following (2200+ followers on Twitter and growing daily), but whether you like it or not, the guy’s words move the Crypto markets.
I don’t know anything about him. For all I know Fontas is a group of traders attempting to move the markets. There is a lot of that going on. And while the Fontas Pumps are generally big fails at the times he says, the Fontas Effect is very, very real. An example – late last night Fontas advertised via his Twitter account that he’d be pumping NameCoin at 9PM EDT, some 19 hours later.
As you can see from the picture, the pump never materialized and instead was a massive dump. I suspect Fontas had actually accumulated NameCoin the previous evening while everyone was distracted by another pump and dump and then dumped every single bit of it at the time he said it would be pumped.
So the vaulted Fontas pump failed miserably – if you waited until 9PM to get in, expecting it to go higher at that point, at the session highs. I’m sure he, or the group of people he may or may not represent, laughed all the way to the bank.
The Fontas Pump failed but the Fontas Effect worked great. Exactly what is the Fontas Effect? It’s actually his very loyal followers doing the work for him, whether they know it or not. He announces a coin he’s invested will be pumped sometime in the future and then, rides the wave up of people accumulating those coins to join the pump, and then dumps the whole lot sometime around the appointed time. It’s genius, really. In no actual governed market could you get away with this but in the Crypto world it’s old hat and, to be honest, sort of fun to watch. Had you gotten in when he announced and then out before the 9PM time you could have made 30%.
I’m not really sure what to think about these events other than that they are fun to watch. It will be interesting to see what happens with his new NVC pump.