The Singapore Exchange Regulation (SGX RegCo) recently alerted the public about possible market misconduct activities that misuse Telegram chat groups and other channels where investment strategy is discussed.
SGX RegCo is an independent subsidiary of Singapore Exchange (SGX) which carries out regulatory functions on behalf of the exchange.
It said that while such platforms could be useful for investors to share knowledge and information, wrongdoers may misuse those social channels for their own benefit.
TL;DR: “Pump and Dump” Activities via Telegram and Other Channels
People may engage in “pump and dump” schemes in Telegram or social groups with an aim to profit from it.
Under such schemes, the wrongdoer promotes interest in a particular stock to encourage other members in the chat group to buy the same stock. The wrongdoer would have already bought shares in the company prior to this.
Once more members of the chat group bid the price of the stock...
