Meme cryptocurrencies are often the target of so-called “pump and dump” schemes. In these cases, large groups of investors coordinate the purchase of a coin, artificially increasing its value (“pump”). Once the price reaches a peak, the organizers sell their holdings en masse, causing the price to plummet (“dump”). This pattern is quite common among coins with smaller market capitalizations and less liquidity.
This type of manipulation generates extremely sudden up and down movements, leaving inexperienced investors vulnerable to large losses.
Be aware of the choices you make, analyze the market and daily news so you can have a little more luck!
