A pump and dump scheme: a group artificially inflates a coin’s price, then sells their holdings at the peak, leaving late buyers with worthless tokens. Most common with meme coins, also happens on larger altcoins.
How It Looks
- Accumulation — organizers quietly buy large amounts at low prices
- Pump — coordinated buying drives price up 100-1000% quickly
- Marketing — paid influencers and Telegram groups spread hype
- Dump — organizers sell, price collapses
How to Spot It
- Surging 200%+ with no news or development
- Low liquidity (thin order book)
- Anonymous team, no roadmap
- Telegram groups pushing “signals”
- Often ends with 90%+ collapse
Disclaimer: This is not financial advice. Always do your own research.