[How Pump and Dump Works: The Shoe Example]
1. A group hypes up a cheap shoe priced at $10.
2. People believe the hype and rush to buy, driving the price to $100.
3. The group sells their shoes at the inflated price, making a massive profit.
4. Once sold, demand vanishes, and the price crashes back to $10 or lower.
5. Buyers who purchased at $100 are left with losses.
Takeaway: Be cautious of artificially inflated markets and don’t let FOMO (Fear of Missing Out) lead to bad decisions.
Disclaimer: DYOR, NFA, and always use proper risk management! This is for educational purposes only!