Crypto pump and dump: What is it and how does it work?
⬇️Must Read To Avoid Pump And Dump
Here's how it typically works:
1. Selection: Scammers choose a low-volume, relatively unknown cryptocurrency that is easy to manipulate.
2. Accumulation: The scammers accumulate a large amount of the chosen cryptocurrency at a low price.
3. Hype and misinformation: They start promoting the coin on social media, forums, and other channels to create buzz and convince others to buy. This often involves spreading false information or rumors about the coin's potential.
4. Price surge: As more people buy the coin, the price increases rapidly due to increased demand and limited supply.
5. Dump: Once the price reaches a certain level, the scammers sell their holdings, cashing out with a profit while causing the price to plummet.
It's important to be cautious and vigilant to avoid falling victim to pump and dump schemes.
