### **๐จ ๐ฅHow Pump and Dump Schemes Work: A Quick Breakdown** ๐๐๐ค
A **Pump and Dump** is a market manipulation tactic often seen in low-liquidity assets like meme coins or smaller cryptocurrencies. Hereโs how it works:
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### **๐ Pump Phase**
- **Organized Hype:** A group (or whales) creates massive hype around a specific coin through social media, forums, or private groups.
- **Buying Spree:** They buy in bulk, driving up the price quickly.
- **Retail FOMO:** The public sees the price skyrocketing and jumps in, hoping for profits.
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### **๐ฅ Dump Phase**
- **Sudden Sell-Off:** Once the price peaks, the organizers dump their holdings at inflated prices.
- **Price Crash:** The coin's value plummets as demand evaporates.
- **Retail Losses:** Most retail investors are left holding worthless assets.
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**โ ๏ธ Be Cautious:**
1๏ธโฃ Always DYOR (Do Your Own Research).
2๏ธโฃ Avoid FOMO-based trades.
3๏ธโฃ Stick to reputable projects and avoid "too good to be true" gains.
๐ฌ **Have you ever spotted a pump and dump? Share your tips on staying safe below!**