An exit pump is a strategy used by traders to profit from a rapid increase in the price of an asset, usually due to artificial manipulation or speculation.
🔍 How does it work?
1. Price Manipulation: A group of traders (often called "pumpers") create artificial demand for an asset by placing large buy orders, causing the price to rise sharply.
2. Exit: When the price reaches the desired level, the pampers begin to sell their assets, which causes the opposite effect - a drop in the price.
3. Profit: Early entrants make a profit, while new investors who buy the asset at the peak suffer a loss.
⚠️ Why is it dangerous?
An exit pump is a form of market manipulation and can lead to significant financial losses for those who are not aware of this strategy. It is important to remain cautious and not fall for promises of quick earnings!
🔽Came exit pump happened with $UNFI a day later. Exchanges announced the delisting of the coin, many traders shorted it - after all, delisting is a surefire short profit. After that, the price of the asset increased in an hour by 480% and fell back sharply. Very strong manipulation. I have already fallen on such a lot of times. That's why I always say that shorts are dangerous and you need to put a stop on them if growth by 500-600% is not foreseen by the strategy!
Always share risk information and educate yourself to protect your investment! 🌟💪
