#pumpanddump

Pump and Dump Schemes

The organizers behind them typically scan various crypto exchanges looking for tokens that trade at low volumes and have cheap prices.Youmay find many on telegram. They then announce a coordinated pump, providing exact instructions on when to buy and when to sell. Prices are usually given in satoshis.

These groups coordinate their buys so that tens of thousands of people purchase the same token at the same time, driving up the price artificially.

Uninformed buyers — who aren't aware it's a manipulated pump — might think they're investing in the next big coin, dreaming of massive profits. Unfortunately, once the group starts dumping the token, its value plummets almost instantly, leaving latecomers with worthless assets.

This is how these scams typically operate. Always be cautious when you see coins on platforms like CoinMarketCap showing a sudden 100%+ gain within 24 hours — it might be part of a pump and dump.