What is Pump and Dump?

Pump and Dump can be translated as “inflate and dump”. It is a fraudulent practice that occurs when there is an overvaluation in the price of a financial asset through misleading statements, such as rumors or fake news.

The people responsible for the fraud promote the asset, encouraging other investors to buy it, thus increasing its price.

When the price reaches the desired level, the offenders sell their holdings en masse (dump), causing a significant drop in the price.

Thus, investors who were deceived and bought during the pump period end up losing money when the price plummets.

This practice is illegal in many countries and can lead to serious penalties for those involved, including imprisonment and fines.

You have probably seen someone on the internet recommending the purchase of a certain cryptocurrency.

A person with influence on social media, with many followers, for example, can buy an asset at a low price and tell their followers to buy more so that the value of the asset increases. This is a form of market manipulation, so be very careful when buying cryptocurrencies based solely on recommendations, be cold and calculating, and don't go for emotion alone. Good business to all. #neiro #troy #trunp