Pump & Dump?$BTC

With the development of the digital currency market, theft and fraud have also developed.

The traditional fraud methods through which the fraudster defrauds you of an investment amount or steals it from your wallet have become exposed.

Therefore, fraud has begun to occur within the framework of investing in the market. In most cases, the victim considers his loss in a certain currency to be a natural loss in the market, but in fact, the loss is a systematic fraud, but indirectly. So what are Pump & Dump currencies and how to avoid them? All this and more we will discuss in this article.

Pump & Dump currencies

The idea behind Pump & Dump is to play on the victim's feelings of greed, as the fraudster raises the price of the currency in a fictitious manner to deceive the victim that this currency is expected to rise further, and when the investor enters the currency, the fraudster directly disposes. Pump & Dump currencies are not limited to new currencies that the fraudster can create, but the fraudster may use an existing currency in the market and manipulate its price to dispose of investors.

How does the Pump & Dump process work

As we mentioned at the beginning of the article, the scammer manipulates the currency price in two ways: either creating a new currency or choosing an existing currency in the market.

  As for creating a new currency:

As we have recently witnessed, creating currencies, especially meme currencies, has become very easy, and anyone with less than $ 10 can create a currency