Key Highlights from #RichardTeng

Speech today

🚨 Key Signs of a Pump & Dump

1️⃣ Unusual Sudden Volume Spikes

• Sharp increase in trading volume with no fundamental news.

• Thin order books filled with aggressive buys.

2️⃣ Parabolic Price Movement

• Price shoots up rapidly (50–200% in minutes/hours).

• No real support levels formed — just vertical candles.

3️⃣ Hype on Social Media/Groups

• Telegram, Discord, X (Twitter) flooded with “BUY NOW” messages.

• Influencers or anonymous accounts pushing the same token aggressively.

4️⃣ Low Market Cap & Low Liquidity Coins

• Usually small-cap tokens with weak liquidity.

• Easy for manipulators (“whales”) to move the market.

5️⃣ Suspicious Chart Patterns

• Long wicks after sudden pumps (sign of early sellers exiting).

• Fast retracements after big green candles.

6️⃣ Whale Wallet Movements

• Big wallet addresses suddenly accumulating before the hype.

• Then dumping after retail traders FOMO in.

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🛡️ How to Protect Yourself

✅ Always check news sources (is the pump backed by real news or just hype?).

✅ Avoid chasing green candles — wait for retracements and confirmations.

✅ Use volume + liquidity analysis to confirm real momentum.

✅ Stick to higher cap coins for safer trading.

✅ Manage risk with stop-loss & position sizing.

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⚠️ Rule of Thumb:

If a coin suddenly goes up too fast without real reason, it’s almost always a pump and dump trap.