### **🚨 🔥How Pump and Dump Schemes Work: A Quick Breakdown** 🚀🚀🤑
A **Pump and Dump** is a market manipulation tactic often seen in low-liquidity assets like meme coins or smaller cryptocurrencies. Here’s how it works:
---
### **🎈 Pump Phase**
- **Organized Hype:** A group (or whales) creates massive hype around a specific coin through social media, forums, or private groups.
- **Buying Spree:** They buy in bulk, driving up the price quickly.
- **Retail FOMO:** The public sees the price skyrocketing and jumps in, hoping for profits.
---
### **💥 Dump Phase**
- **Sudden Sell-Off:** Once the price peaks, the organizers dump their holdings at inflated prices.
- **Price Crash:** The coin's value plummets as demand evaporates.
- **Retail Losses:** Most retail investors are left holding worthless assets.
---
**⚠️ Be Cautious:**
1️⃣ Always DYOR (Do Your Own Research).
2️⃣ Avoid FOMO-based trades.
3️⃣ Stick to reputable projects and avoid "too good to be true" gains.
💬 **Have you ever spotted a pump and dump? Share your tips on staying safe below!**