A pump and dump scheme in the crypto market involves artificially inflating the price of a cryptocurrency (the "pump") and then quickly selling off large quantities to profit from the inflated price (the "dump"). This manipulation typically results in significant losses for unsuspecting investors who buy in during the pump phase. Here’s how you can identify and protect yourself from such schemes:

### Identifying a Pump and Dump Scheme

1. **Sudden Price Spikes:**

- Be wary of cryptocurrencies that experience sudden, unexplained price spikes without any significant news or development to justify the increase.

2. **High Trading Volume:**

- Look for unusual spikes in trading volume, which can indicate coordinated buying activity designed to drive up the price.

3. **Social Media Hype:**

- Pump and dump schemes are often coordinated through social media platforms, chat rooms, and forums. Be cautious of excessive hype and promises of guaranteed profits.

4. **Lack of Fundamentals:**

- Cryptocurrencies targeted in pump and dump schemes often lack strong fundamentals or a clear use case. Research the project thoroughly before investing.

5. **Unknown Coins:**

- Lesser-known or newly listed coins are more susceptible to manipulation. Be particularly cautious with these.