How fake news and deepfakes power the latest crypto pump-and-dump scams.
Pump-and-dump schemes in Web3 manipulate a cryptocurrency’s price through coordinated buying along with misleading information and hype to lure investors in before a mass selling of a token, leaving it almost worthless.
Decentralized anonymity and 24/7 unregulated trading make the industry particularly vulnerable to these manipulative investment schemes.
A pump-and-dump follows four stages, including the token prelaunch, promotional hype building at launch, price pumping through buying action and a coordinated sell-off by orchestrators running off with profits.
You can protect yourself from falling for pump-and-dumps by avoiding unsolicited investment advice, being skeptical of social media ads and avoiding schemes with promises of unrealistic returns in short time frames.
