Cryptocurrency Trading: Understanding Pump & Dump for Utility Tokens
This is when persons manipulate developments of a certain token that they are interested in, as most tokens are marketed as being utility based it is simple to manipulate the market. To understand how this works it is imperative how utility and utility token works and affect the economy. Utility, according to economists is the measure of happiness, enjoyment or a sense of security that a person receives from a commodity or a service in comparison to many other commodities. Utility is basically seen as a measure of the value of one particular commodity, for various different people. In economics it is usually assumed that an individual is rational, if utility is maximized in their care about money and life, that is to say that if an individual chooses one particular commodity from among many such in a group, the rationality of the individual is based on whether his option outweighs the rest in propelling their satisfaction. For example: if Sarah is given a choice between having ...