🚨 Beware of the Scheme that Can Make You Lose Everything: Pump and Dump in Cryptos!
Have you ever heard of Pump and Dump? This practice, which may seem tempting, is actually an illegal and very dangerous scheme for investors. Let's understand how it works:
1️⃣ Pump (inflate the price):
An organized group buys large amounts of a little-known, low-value cryptocurrency. This causes the price to rise rapidly, attracting the attention of other investors.
2️⃣ Dump:
When the price is high, these same organizers sell everything at once, causing the value of the currency to plummet. Those who entered this “wave” late end up losing money.
In short, a#PUMPis basically a “leap of faith”! Something amazing that doesn’t give you a chance to think, creating in you the feeling #FOMO that is “the fear of missing out on the opportunity”. And then you enter as an already marked target. You are used! They pour out thousands and thousands of Fake publications, with speculations to keep you deluded, holding your tokens under your arm like the Holy Grail, long enough for you to leave with your pockets full… so that you run away with the dollar in your underwear… so that you run away with all the gold, while the police don’t arrive! In other words, the sardines become the straw men. You are used and sucked dry, like a straw man and of course, only the dregs are left!
On the other hand, #DUMP is the quick descent of someone who wants to jump off the ship before it sinks… It’s getting out! It’s descending abruptly! Lowering yourself to ground level, or worse, below it… It’s resetting your position, removing everything… cleaning up the crime scene. (“while of course, you’re distracted, reading the news that that’s the coin that will make you a millionaire”). By the time you realize that it’s been used, it’s already too late and there’s still the post-traumatic feeling of loss, in which you insist on “waiting” with that old and false hope that “one day”, within that week, or in the next few days, the Holy coin will rise again and you’ll recover what you lost, or worse… you read so many miraculous articles about the coin that you end up believing that it will still make you a millionaire. You fall right into the con and end up becoming “a witness to that coin”…
How to identify and avoid?
✔ Be wary of miraculous promises: If someone says that a currency will “explode” in a short time, be on alert.
✔ Research before investing: Study the project, see if it has real utility and avoid unknown currencies.
✔ Beware of rapid movements: Graphs with absurd rises followed by sudden falls are clear signs of Pump and Dump.
✔ Invest responsibly: Don’t let yourself be carried away by the fear of missing out (FOMO).
💡 Remember: This practice is illegal in many countries and harms honest investors. In the cryptocurrency market, knowledge is your greatest protection!
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