PayPal adding the Litecoin and other cryptocurrencies was an exciting news for the community in the past month. Any news that excites the community encourages the investors to look deeply in to the token for the prospects of price gain.
The PayPal news is good news for mass adoption of crypto. It has nothing to do about price. There are some fanciful commentators who state that this news is a pump. Technically, this news is a fact and is not a pump. The consequential perception about this news can lead to a pump.
When any statement is made, lot of perceptions and assumptions come to the minds of the investors. These “derived perceptions” from the “statements” either encourage or discourage the investors from buying or selling. Thus, every simple statement has a method of influencing the investor attitude.
For those who do not understand what is pump and dump – some statements which are not true are made by the advocates of a crypto or stock, to excite the investors to put their money in to a stock or token. Investors flock in to take position. Unsuspecting investors buy the pump.
When there is an exciting news about a token or stock usually the advocates try to take advantage of the statements and they try to pump the tokens to investors. Pump and Dump is technically a scam. Though all statements are not scams, hypercritical investors point to positive statements by crypto advocates as a pump in a sarcastic manner too.
Social media platforms, bulletin boards, and similar platforms are where such pumps are made. Many times statements which were not meant to be pumps gets perceived as pumps and many times there are stances where a random statement kicks in a pump from nowhere.
When talking about the influence of simple statements, Sydney Ifergan, the crypto expert tweeted: “A simple statement like PayPal adds BTC, BCH, ETH, and LTC creates so much of assumptions and presumptions in the minds of the investors making them react – ultimately buying Litecoin (LTC) or any others.”
While lot of statements are getting made about crypto, there are some people who will not trust in cryptocurrencies until it comes in to everyday use.
PayPal might be considered to be better and reliable than several other exchanges. Beyond the “not your keys not your coin” idealogy, PayPal is expected to be a must go place for crypto soon. A lot of BTC is expected to go to PayPal very soon.