What are we talking about when we speak of ‘how to pump and dump crypto’? Why should you know about the ‘pump and dump’ term when dealing with cryptocurrencies? Let’s try to find out!
The hype around cryptocurrencies — such as Bitcoin, Ripple, and Ethereum — increasingly leads to an emergence of different terms that have never been heard before. Today, almost every person can get crypto from home. However, there are still young people with no experience who want to become a part of the hype. Not a new term, but now also used in the crypto sphere is ‘pump and dump’.
‘How to pump and dump crypto?’ is a rather popular question nowadays. Let’s find out what does it mean! In the crypto world, ‘pump and dump’ term means to pump and then to dump cryptocurrency. Sometimes it’s also called ‘pump and dump scam’ and means an illegal manipulation of the stock market.
With P&D, cheap shares of a company with a low market value (total value of all shares in circulation) and a low individual value of the shares are bought in advance by scammers. Such shares are often only worth a few cents (penny stocks) because they’re easy to manipulate.
Through the dissemination of false information, demand is generated in order to drive up the value and get people to buy (pump) cryptocurrency. After the price has risen sufficiently, the scammer sells his shares profitably (dump) and gives up the dissemination of false information about the respective company. Subsequently, thousands of inattentive users suffer high losses.
How to Find a Crypto Pump and Dump Group: Key Things to Know About P&D Groups
How to spot pump and dump crypto? Well, Altcoins are always used for pump and dumps. Relatively new coins with a low exchange rate and low trading volume are the best ones. In the context of scam, we speak of shitcoins.
The term clearly applies during scam — the increased value is a true bubble which falls within a very short time. However, there are also coins that do have potential. Genesis Vision (GVT), which was listed in the top of promising coins of 2018, was used for P&D twice.
The extreme increase in value is made possible by the small volume. If a coin only has a few ETH trading volumes, a group with impressive capital and over 2,000 members can easily affect the price.
In some P&D groups, members vote on which coin will be attacked next. Large and hot currencies such as Bitcoin and Ethereum are excluded since hardly a group will be big enough to manipulate the price single-handedly.
How to find crypto pump and dump groups? Well, it’s necessary to try various social media platforms. For example, Telegram. All you need to do is just search for those keywords.
How to Avoid Crypto Pump and Dump: What Are the Main Reasons?
How to avoid crypto pump and dump? Why you shouldn’t join the P&D group? It’s unethical. It can destroy the reputation of promising coins. It will be illegal soon. Oh, and you will most likely lose all your money.
New groups that are created every day often form an additional scam circle around existing groups. They present themselves as new and great ones but only take information from other scam sources. This usually means that the information comes with a long delay. Participants in the new group start too late and finance the profits of the original group.
In addition, you may also have to face the consequences of the exchange. P&D members are blocked, so you can not only lose your money but also your account.
How to ride pump and dump crypto? Where do pump and dumps usually take place? The classic pump and dump scams come from the stock markets and stock exchanges. Several centuries ago, scammers came up with an idea of pumping up so-called penny stocks and selling them at great profits.
Trading with insider knowledge has been prohibited for a long time on regulated markets, but it cannot be combated efficiently in the crypto world yet. It can be assumed that more and more laws around cryptocurrencies will be adopted in the near future and that pump & dumps with digital currencies will also be punishable.
However, there has been a lot of advertising, and there are countless groups in large chat channels such as Telegram and Discord, as well as on Facebook, which share openly their strategy and plans.
How to Get Rich on Pump and Dump Crypto: Is It Possible to Make Money on P&D?
Why do people usually wonder ‘How to get rich on pump and dump crypto’? Why do users always join these groups?
It’s the same effect as in the case of a lottery. If you missed the big win, you just have to make it work the next time you try. With a pump and dump, it’s almost easier than with a real lottery. Since everyone thinks they understand the ‘mechanism’ of a pump and dump. Again, participating is so tempting — ‘All I need to do is just recognize a good moment & buy/sell earlier next time’ But the system isn’t about to make P&D members rich.
It will be even more difficult to keep you from pumping and dumping when your first attempt works. In practice, this doesn’t mean that you are dealing with ‘honest scammers’. In the following pumps, the organizers will most likely inform you too late and rip you off.
If for any reason you still wonder ‘How to crypto pump and dump?’ or you still want to take part in the P&D scam, then at least don’t invest your last money!
What do you guys think about pump & dump strategy? Just share your thoughts in the comments!
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