So, a company (DAO) says it's going to use investment money (token contributions) to buy an asset (copy of the Constitution) and fails to buy the asset...and then the stock (token) goes up 30x in price?
There is no deception behind the marketing for the ConstitutionDAO. No one has made any claims of it being a profitable venture. It was explicitly marketed as a non-profit venture to democratize ownership of important cultural pieces. The PEOPLE tokens appear to be going up in value solely due to the sentimental value attached to them.
How can you be sure this isn’t wash-trading organized by the largest owners so they can attempt to profit at the expense of individual retail investors?
Seems like wash trading in this way would cannibalize your gains if you don't withdraw before too long. I actually don't think that's what's happening. I think it's the memecoin effect. The constitution DAO got a lot of media attention and that's driving speculation on their $PEOPLE token.
Yea, the other day I had the thought that many cryptocurrencies are basically just the stock without the business. So much easier to sell a stock when there's no business behind it, potentially contradicting the hype story.
