Pump and Dump
A market manipulation scheme where insiders artificially inflate a token's price before selling at the top.
Explained Simply
Pump and dump schemes involve coordinated buying to drive up a token's price (the pump), followed by insiders selling their holdings at the inflated price (the dump), leaving other buyers with losses. Common in small-cap tokens with low liquidity. Warning signs include sudden unexplained price spikes, aggressive social media promotion, anonymous teams, and tokens with no real utility. Telegram and Discord groups sometimes openly coordinate pumps. Always research before buying tokens experiencing sudden hype.
Related Tools
Put this knowledge into practice with these tools.
This content is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for advice specific to your situation.