🚨 How Coins are Pump-and-Dumps 🚨Let’s break it down with a simple example:
1. The Pump Begins
A group of people starts hyping a small, inexpensive product—let’s say a toy priced at ₹10. They create buzz and excitement to make others believe it’s incredibly valuable.2. Price Shoots Up
As the hype spreads, people rush to buy the toy, pushing its price up artificially—let’s say it skyrockets to ₹100. This is the "pump" phase, fueled by FOMO (fear of missing out). 🚀
3. The Dump Happens
The same group that created the hype begins selling their toys at the inflated price. They cash out big, leaving the market flooded with overpriced toys. 💸4. The Aftermath
Once the group exits, demand vanishes. The toy’s price crashes back to ₹10—or even lower. Those who bought at ₹100 are left holding the bag, facing heavy losses. 😞
This same cycle often plays out in financial markets, especially with small, lesser-known coins or stocks.
Key Takeaway: Always research before investing and be cautious of unusual, rapid price surges. Don’t let FOMO drive your decisions.it’s better to miss out than to lose out. Stay informed, stay safe! 🙌#CryptoTips #PumpAndDump #InvestSmart