Have you heard of "Pump and Dump"?
Does the idea of investing little and earning a lot appeal to you?
Read and I will clarify all your doubts.
Everyone here wants to invest as little as possible and make big profits, and quickly. And among all those ideas, the pump and dump appears to have great profits.
What is it?. Basically it is that a group of people agree on a day and a time, and in the exchange they will "raise" the value of a Token (which normally has a flat behavior) for a few minutes, where supposedly some investors with a lot money will buy the token so that it rises in value, like a whale. So that? To be able to buy cheap. And sell bullish, and make big profits.
First of all, telling them that this practice is illegal within the financial world.
Second, Tell them that this is the closest thing to a ponzi scheme. Why the first trap is that the name of the token will be said 2 minutes before the agreed time, not before. And within the "event" manual it states that to purchase the token faster, it is purchased at market price. That is, you do not control the purchase price, you only know what you are going to buy.
So, you and 5,000 other people buy at the market price. Does it sound strange to you? Of course, why should I tell you that the supposed whales do not exist. The whale is you and the other 5,000 people in the group, who by buying at the market price put pressure and cause the price to rise. And here comes the second trap. The thing is, the people who organize, who already knew which token was going to rise, and who obviously bought the token before you, sell the high amounts of tokens that they managed to buy perhaps a few days before. That is, you provide liquidity to the currency and the organizers keep your money.
Or charge you to tell you the name of the token 24 hours in advance. (about 200 usd)
Conclusion, I humbly suggest that if you want to take care of your money, you stay as far away from pump and dumps as possible.
Patience!
Anyway, do your own research.
#pumpanddump
#DYOR!!
