Market pump and dump schemes continue to occur in the cryptocurrency market due to several factors:

### 1. **Low Regulation**

- **Lack of Oversight**: Unlike traditional financial markets, cryptocurrency markets are less regulated, making it easier for bad actors to manipulate prices without facing significant legal repercussions.

- **Global Market**: Cryptocurrencies are traded globally, and different jurisdictions have varying levels of regulation and enforcement, creating opportunities for manipulation.

### 2. **Market Volatility**

- **High Volatility**: Cryptocurrencies are inherently volatile, with prices that can swing dramatically in short periods. This volatility creates opportunities for pump and dump schemes, where prices can be artificially inflated and then dumped quickly.

- **Low Liquidity**: Many cryptocurrencies, especially smaller altcoins, have low trading volumes. This makes it easier for large holders (whales) to manipulate the market.

### 3. **Whales and Large Holders**

- **Concentrated Holdings**: A small number of investors (whales) often hold significant amounts of certain cryptocurrencies. These whales can influence market prices by buying large quantities to pump the price and then selling off to dump it.

- **Coordination**: Whales sometimes coordinate their actions, either through private groups or public forums, to create more effective pump and dump schemes.

### 4. **Psychological Factors**

- **FOMO (Fear of Missing Out)**: Rapid price increases can trigger FOMO among retail investors, causing them to buy in at inflated prices, which further drives the pump phase.

- **Herd Mentality**: Investors often follow the actions of others, buying during a pump and selling during a dump, exacerbating the price movements.

### 5. **Information Asymmetry**

- **Insider Information**: Whales and insiders may have access to information that the general public does not, allowing them to time their trades advantageously.