Pump And Dump
A pump and dump is a market manipulation scheme where promoters artificially inflate an asset's price through false hype, then sell their holdings to unsuspecting buyers at the top. It's illegal for securities but common in unregulated crypto markets.
Understanding the Concept
• "Pump" phase: coordinated buying and aggressive promotion • "Dump" phase: insiders sell to retail buyers who FOMO in • Often targets low liquidity assets that move easily • Telegram groups and influencers frequently orchestrate crypto pumps
Real-World Example
A group coordinates on Telegram to pump an obscure altcoin. Leaders accumulate quietly, then signal members to buy. Price spikes 500% in hours as social media hype spreads. Retail traders FOMO in. Leaders dump their bags, price crashes 80%, and latecomers are left holding worthless tokens.
How Strykr Helps
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