i'm glad ASIC is actioning this because it is a big problem. Allegations of pump and dump campaigns and market manipulation are not just the excuses of disgruntled traders. Let me give you a recent real life example. I am in various trading forums and it's reasonably well known that I'm a trader and investor. Recently, I was contacted by a Chinese trader who sought to befriend me but it quickly became apparent that what they were really doing was coordinating a large number of traders to execute a pump and dump of NASDAQ stocks. I was told that the consortium of traders which they called a "cooperation" would agree at a certain time to buy the stock and ramp it up, including by way of placing false and misleading articles and social media posts and then when it hit an agreed target price they would all sell (the dump) leaving retail shareholders holding the bag. this was described to me as if there was nothing wrong with it. They wanted me to be a part of it and represented it as a wonderful opportunity. I told them there was no way I would be part of such a pump and dump and that such schemes were illegal in both Australia and the United States and that as a lawyer I would have nothing to do with it. I never heard from them again and I reported their account which subsequently disappeared. So you better believe it folks, these concerted pump and dump campaigns are happening, it's real and it's a problem and ASIC does need to act.
BRN Price at posting:
39.5¢ Sentiment: Hold Disclosure: Held
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