๐ Why coins pump & dump together
1. Low liquidity โ In small or new coins, even a few big buys can push the price up sharply.
2. Whales (big holders) โ A few wallets buy large amounts to push the price up, then sell at the top.
3. Pump-and-dump groups โ Telegram/Discord groups coordinate mass buying, then sell quickly.
4. FOMO (Fear of Missing Out) โ Traders rush to buy after a rumor or โbig newsโ, creating a short-term pump.
5. Bots and algorithmic trading โ Bots detect sudden volume spikes and amplify the move.
6. Short squeeze โ If too many traders are shorting, a sudden rise forces them to cover, pushing price even higher.
7. Linked pools/exchanges โ Coins in the same liquidity pool or exchange often move together.
8. Wash trading / fake volume โ Some projects create fake trades to look active.
9. Front-running / MEV bots โ Bots that manipulate transaction order to profit from price moves.
10. Rug-pull or exit scam โ Devs or large holders pump the coin to dump and vanish.
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๐ง How to tell if a pump is real or manipulated
Check volume: Sudden spikes without real news = suspicious.
Look at order books: Are large buy walls or market buys appearing suddenly?
Holder concentration: If 1โ2 wallets hold >50%, risk is high.
Check legit news: Real listings, audits, partnerships?
Social activity: Only hyped in a few pump groups? Red flag.
Smart contract: Is it verified? Ownership renounced? Liquidity locked?
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๐ก๏ธ How to protect yourself
1. DYOR (Do Your Own Research) โ study team, tokenomics, audits, and liquidity locks.
2. Small positions โ only invest what you can afford to lose.
3. Set entry/exit & stop-loss โ donโt chase green candles.
4. Use alerts โ whale movements or sudden on-chain volume spikes.
5. Avoid late entries โ joining after a pump usually means buying the top.
6. Check liquidity โ locked liquidity = safer.
7. Avoid paid pump channels โ 99% are scams.
8. Watch whales โ if you see heavy sell activity, be cautious.