Part 6/9:
Financial experts emphasize that buyers should only invest what they can afford to lose. The rapid spike and collapse in Tua Coin's value exemplify the “pump and dump” phenomenon, where early investors profit at the expense of latecomers who enter too late and face total losses.
The Ethical and Legal Dimensions
While the lawsuits accuse the creators of negligence under securities law, there is a debate about whether criminal negligence or outright fraud occurred. The plaintiffs are careful to note they are not claiming Welch intended to deceive but highlight that she might have lacked awareness about the legality of the tokens she promoted.