"Pepe Coin: The Next Victim of the Pump & Dump and Rug Pull Schemes?"
The cryptocurrency market, although full of opportunities, is also plagued by fraudulent schemes. Two of the most common are the "Pump & Dump" and the "Rug Pull."
What are Pump & Dump and Rug Pull in Crypto?
*The "Pump & Dump"
is a scheme where scammers artificially inflate the price of a cryptocurrency by spreading false or misleading information. That's how it works:
Initial Purchase: Scammers purchase large amounts of a low-value cryptocurrency.
Fake Promotion: They use social networks, forums and other channels to spread rumors and fake news, generating a buying frenzy.
Mass Selling: Once the price has risen significantly (the "pump"), scammers sell all their holdings (the "dump"), making huge profits and leaving new investors with losses when the price drops.
Rug Pull The “Rug Pull” is another scheme where the developers of a cryptocurrency project suddenly abandon the project and take the invested funds with them. That's how it works:
Project Launch: Developers create a new token or project, promising great returns or innovations.
Investor Attraction: They aggressively promote the project to attract investors and increase the value of the token.
Abandonment: Suddenly, the developers withdraw all funds from the project and disappear, leaving investors with worthless tokens.
Here is $PEPE how it fits perfectly into these frauds, let's analyze:
Pump & Dump: Ballenas (large holders of Pepe Coin) could inflate the price through a false promotion. By stimulating the market and causing large purchases, they can sell their holdings at high prices and then disappear, causing the price to fall sharply.
Rug Pull: Yes Pepe Coin was created by (anonymous) developers. If you are interested you can read this full article on my profile, here! The number of characters is limited.
