Alarming Alert: Beware of Pump and Dump Schemes in Crypto
During the last bull market peak, I unintentionally joined a Telegram group involved in a pump and dump scam. I witnessed obscure coins suddenly surging by up to 500% within minutes, only to crash soon after. These spikes lacked any legitimate reasons, hinting at potential market manipulation.
Upon investigation, I discovered how these schemes operate within the crypto world. Participants in these groups receive detailed plans about a specific coin, timing, and exchange. On the designated day, coordinated buying artificially inflates the coin's price, enticing unsuspecting investors to join in due to fear of missing out (FOMO).
I believe exchanges should consider measures like temporary withdrawal halts when coins experience suspicious price surges to protect users. For instance, Binance took action with DREP in 2021, safeguarding many investors. Stay tuned for more insights on identifying and avoiding these scams in future market cycles.
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#cryptoscams #investorprotection #StayVigilantInCrypto #BinanceTurns7