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ASTS: Space-Age Scam Burns Investors

ASTS: The space-age pump-and-dump Another reminder that guaranteed returns are usually just polished lies Remember Enron? This is its space-faring cousin

TL;DR

Another day, another pump-and-dump scheme. ASTS, a satellite company with little to show for its promises, crashed after a hype-fueled stock run-up, leaving investors like John with substantial losses. The lesson: Don’t chase hype; do your research!

Story

Another day, another rocket ship crashing to Earth. This time, it’s ASTS, a satellite company promising the moon—but delivering nothing but losses. John, a retiree hoping to boost his nest egg, saw the hype. He thought he’d found the next big thing; instead, he found himself staring at a rapidly dwindling account. The mechanics were simple, deceptively so. The company generated buzz, promising groundbreaking satellite technology. Unsubstantiated claims inflated the stock price, drawing in unsuspecting investors like moths to a flame. It’s like watching a rerun of Enron or the 2008 financial crisis, but with a space-age twist. The ‘imminent patent approval’ mentioned online? Pure speculation. The ‘cutting-edge technology’? Likely vaporware. The promised satellite launches? Repeatedly delayed, with no actual launches to show for it. ‣ Options in an IRA: Investing in options within a retirement account. This adds additional risk, like gambling with your retirement. John’s story is one of many. Small investors, chasing quick riches, are left holding the bag. The impact is real: lost savings, shattered dreams. The lesson? Don’t chase hype. Do your due diligence. Treat any investment promise of guaranteed high returns with extreme skepticism, especially if it involves something as volatile as high-tech start-ups or complex financial instruments like options. Any company repeatedly delaying critical milestones is a red flag, likely a scam. Be wary of companies that hype their product without concrete results. Remember, the stock market isn’t a lottery. It’s a complex system where even experienced investors can be burned.

Advice

Never trust investment promises that sound too good to be true. Always verify information from multiple reliable sources before investing. Beware of companies with repeatedly delayed milestones.

Source

https://www.reddit.com/r/wallstreetbets/comments/1lnwa2z/23000_off_a_satellite_company_that_doesnt_launch/

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