#TradeStories Pump & Dump Coin Schemes Are on the Rise – Protect Your Hard-Earned Money

In today’s crypto world, new coins are launched every day, but many of them are nothing more than pump & dump scams. These schemes are designed to take money from innocent investors by creating artificial hype, pushing the price up quickly, and then crashing it once enough people have bought in.

Here’s how it works: the price of a coin is pumped using fake marketing, influencer promotions, and FOMO (Fear of Missing Out). Once the price rises, insiders or developers sell off their holdings (the “dump”), leaving regular investors stuck with huge losses.

Avoid These Types of Coins:

1. Unknown Founders: If the project’s team is hidden or has no social presence (LinkedIn, Twitter, etc.), it’s a red flag.

2. No Real Use Case: Coins that have no clear utility or purpose are often created just for short-term profit.

3. Overhyped on Telegram or Twitter: Scam coins are often promoted aggressively in Telegram groups or by shady influencers promising “the next 100x gem.”

4. No Audit or Liquidity Lock: Genuine projects usually have smart contract audits and locked liquidity. Scams skip these steps.

5. Sudden Price Spikes: If a coin suddenly pumps 200–500% without any real news or development, it’s probably manipulated.

Always Remember: Just because a coin is trending doesn’t mean it’s trustworthy. Your money is valuable — invest only in projects with a clear vision, transparent teams, and long-term goals.

Most importantly, DYOR (Do Your Own Research) before investing. Don’t fall for promises of instant riches, and don’t blindly trust influencers or hype.

If a project sounds too good to be true — it probably is.