Pump-and-dump schemes are not limited to traditional cryptocurrencies—they also affect OG Fan Tokens 🎮⚽. OG Fan Tokens are designed to give fans of specific organizations, like sports teams or esports groups, a way to engage more deeply with their favorite clubs. However, they have also become a target for market manipulation.
Market Hype and FOMO
One reason OG Fan Tokens experience pumps and dumps is due to social media hype 🗣️. Influencers, chat groups, and even some fans start hyping up the token on platforms like Telegram, Discord, or Twitter. This creates a rush of buyers who don’t want to miss out on potential gains (FOMO) 🚀. As the price surges, traders outside the community get involved, further driving the pump.
Low Liquidity
OG Fan Tokens often have lower liquidity compared to major cryptocurrencies like Bitcoin or Ethereum 💧. This means that it takes fewer trades to move the price significantly. Manipulators can easily buy up a large amount of tokens, create an artificial price increase, and attract more buyers to push the price even higher 💹. Once the price hits a peak, these traders dump their holdings, causing the price to crash 📉.
Profit-Seeking Whales
In many pump-and-dump scenarios, large investors (whales 🐋) are looking for quick profits. They accumulate OG Fan Tokens at low prices, coordinate the pump, and then sell off their tokens when retail investors start buying in.
Lack of Regulation
Since the cryptocurrency market is still less regulated compared to traditional financial markets 🏦, there are fewer protections in place to prevent these schemes from happening.
