Comment Re:Why would they stop market manipulation? (Score 1) 85
Thanks for the clarification of your position. I agree that we're probably not as far apart in position as I initially assumed.
Still, I'll point out that while members of group B don't go out and say "dark pools are wonderful!", they often instead say "Look how awesome we are at improving price discovery! And the American stock market is a model for the world and totally transparent and you should totally invest in it! And a market maker and a hedge fund owned by the same people would totally not collude together for financial advantage! And in fact, here are a bunch of specific stocks that you specifically should invest in RIGHT NOW that are surely on an uphill trajectory (that we coincidentally happen to have invested in previously so that we can benefit from your bringing the price up)! And by all means, don't, under any circumstances, buy any of the stocks that we recommend against (and have sold short or have 'put' options on, and so would be hurt if the price went up instead of down)! You would for sure lose all your money and doom yourself to eternal torment if you did that! And DEFINITELY don't ask who pays the bills on this cable news station or newspaper or website, and what stocks they happen to be invested in! We are totally, for sure, interested in you making lots of money, and we have provided this free financial advice to you out of the goodness of our hearts."
It's not an accident that TV personalities like Jim Cramer keep recommending stocks that subsequently tank, yet they manage to keep their jobs. Even after having previously admitted to doing blatantly illegal things on behalf of former hedge fund employers. (Note that he has tried hard to scrub that video from the internet, or replace it with a more innocuous one while keeping the URL (and hence YouTube comments) from the old one, but the original video can still be found in a few places.)
The thing that's different about Crypto is not the existence of propaganda -- it's the distribution channel for that propaganda. Manipulation of mainstream stocks goes on over mainstream channels (cable news, financial sections in major newspapers, etc.). Manipulation of crypto goes on over "alternate" channels, like social media, since crypto investors consider themselves "alternate" and internet-based, and don't pay that much attention to mainstream channels.
I would point out, however, that in many cases group A and group B are the same people and companies. For instance, many members of group B which are underwater due to excessive short selling (e.g. of meme stocks that inconveniently rose instead of falling, leaving them no opportunity to close their positions (not just temporarily "cover" them with swaps)) are trying to make up the difference by loudly selling crypto get-rich-quick schemes to hapless investors and doing repeated pump-and-dump schemes in a less regulated environment, so that they can then use the proceeds to try to buy more time to delay the reckoning on their short positions in the normal stock market. They also fight the SEC and other government regulators when the government tries to regulate crypto as it does ordinary stocks, because the very fact that crypto is unregulated and hence easier to cheat people is part of what makes it so attractive to them.
They would probably prefer to be quieter about it, but they're in desperate straits, and they need as many people as possible to invest in crypto as soon as possible, so that they can survive a possible future margin call. So the massive advertising push to get new people invested in crypto continues.