The debacle highlights how cryptocurrency investors can profit from hoaxes. And with no central authority overseeing them, it’s unclear what companies can do in response. The statement included what was purported to be a quote from Walmart’s chief executive officer and resembled the official statements that public companies use to announce news to the market.
While hoaxes that move asset prices crop up in financial markets from time to time, cryptocurrencies would seem to provide particularly fertile ground for deceivers. Unlike stocks, trading is mostly untraceable -- scammers leave few tracks for regulators. It takes very little to influence trading of notoriously volatile assets in the space. Traders have become conditioned to expect hysterical price reactions to the flimsiest news -- when, say, Elon Musk namechecks a project on Twitter.
Like many companies, Walmart has indeed expressed interest in cryptocurrencies and blockchain, however. The Bentonville, Arkansas-based retailer advertised a position earlier this year to develop a blockchain strategy. The position is responsible for “developing the digital currency strategy and product roadmap” and identifying “crypto-related investment and partnerships,” according to an August job posting on the company’s website.
Cryptocurrencies are completely unregulated. I don’t think most investors/traders fully comprehend what that means. Essentially, anything goes and it is hard to pin down exactly what is and is not enforceable by law. That has created a wild west environment where every dirty trick that has been regulated out of the conventional markets has found new life in the crypto world. The fact so many floor traders from the money markets have found a new lease of life in the crypto markets is a testament to that fact.Click HERE to subscribe to Fuller Treacy Money Back to top