They’re called a Pump and Dump for a reason as is evident, and the sudden uptick in chatter wasn’t new investors rushing in, it’s part of the campaign. Big difference!
Promo’s are purchased when insiders need to blow outta shares. Dror and his brothers are notorious with this tactic. They buy promo’s when PR’s fail to quickly produce the desired liquidity. Legitimate companies have many tools and options at fraction of the cost to promote their company, but this is the lazy way to only sell shares, and rarely sustainable.
There’s absolutely nothing wrong with trading a promo. Keyword there is “trading” — know the forces behind any price movement before entering a trade so you’re not caught up in the dump, but unfortunately plenty of newbies fall into this trap to no fault of their own, other than not being aware there’s a active promo and end up buying the top of a bunch of empty hype.
If anyone is a long term investor, then they should want to see as few of these upside down traders/investors as possible to help sustain a long term move. The heavier the bag — the less likely price can climb and hold over major resistance lines — again, price action tells the story.
