🔥Pump and dump schemes on Binance:-

#binance #pumpNdump #scamriskwarning #PEPE‏ #BlackRock 🔥 $PEPE

😘As on other cryptocurrency exchanges, involve artificially inflating the price of a cryptocurrency before selling it at a profit😳, leaving other investors with losses🤒.

😘Here's a step-by-step breakdown of how these schemes typically work:Coordination and Planning:-🔥

🥰 The scheme is usually orchestrated by a group of individuals or a single entity🤒. They often use private groups on social media platforms 😳 (like Telegram or Discord) to coordinate their activities and attract participants🤭.

💅Selection of the Cryptocurrency:-

A relatively 🔥low-market-cap🔥 cryptocurrency is chosen because its price can be more easily manipulated due to lower trading volumes😳.

😍Accumulation Phase:-

Before the scheme is publicly announced, the orchestrators quietly accumulate a large amount of the chosen cryptocurrency at a low price🤭.Promotion and Hype: Once they have accumulated enough🤒, the group starts promoting the cryptocurrency aggressively through social media, forums, and sometimes even through fake news🤗. They create a sense of urgency and hype😳, often making exaggerated claims about the potential of the coin🤒.

Pump Phase:-

As the promotion attracts more investors, the 🔥demand🔥 for the cryptocurrency increases, driving up its price. 🥰The orchestrators may also make large buys to further inflate the price, contributing to the momentum😳.

😘Dump Phase:-

At a pre-determined peak or after significant price increase, the orchestrators sell off their holdings at the inflated prices😳. This causes a sharp drop in the price as the market is flooded with sell orders😳.Collapse and Aftermath: After the orchestrators sell off their holdings😳, the price plummets, leaving the late investors with significant losses😳.