The pump and dump scheme.
One day, my cousin was telling me about an influencer who is supposed to give good signals on Telegram. I was skeptical. My cousin was so sure, as proof, he told me about a coin that the influencer gave as a signal.
I checked the coin, its market cap was very low (thousands of dollars), the coin had actually pumped and... immediately dumped.
The scam was so obvious. A coin with a market cap of $20,000 will easily rise once followers start investing, even a $500 investment represents 2.5% of the total supply. Followers see the coin pumping they follow, the coin pumps even more and eventually the developers and influencer start dumping by selling like crazy.
You did the pump, they did the dump.
One thing I always do with any coin is check its market cap, this gives me an idea of where it is and how it can realistically go. Yes, a project with a market cap of $20,000 can potentially return x1,000 or more, but why? Because an influencer gave a signal about a dormant coin saying for no reason that it was going to pump? No.
