Topic: Crypto pump and dump Schemes (Read 159 times)
Well, some people actually love to invest in pump-and-dump projects since they can ride the wave. What becomes the problem is when newbies don't know about this and attempt to jump in just because of FOMO and are left with disaster afterward. It is okay if they can afford those losses, learn from them, and then gain profit in other chances, but these projects could really damage crypto's image and make people hate it, and when new people are unwilling to invest, it can affect crypto further. This is why education is important. Newbies should always do their own research before investing, learn the pattern, and people who are already in it should always share the right knowledge with these new people, not trap or drag them into the hype so their bags could be sold. By this, crypto will be everlasting, and there will be more chances to gain more profits in a healthier way.
If a market does not have pumps and dumps, is it attractive for investors and traders?
In my opinion, a market is only attractive if it gives people chances to trade and invest profitably with its rises and falls. Pumps and dumps sound more likely related to scam operations but in this young market which is sensitive with news, fud, pumps and dumps can occur with solid projects.
If you have enough experience, discipline and patience, you can wait for market pump and dump days to take advantage great discount prices and get good profit after a few days.
You don't have to be an influencer and force everyone to buy or sell anything. Be calm as a small participant in the market and enjoy it.
In my opinion, a market is only attractive if it gives people chances to trade and invest profitably with its rises and falls. Pumps and dumps sound more likely related to scam operations but in this young market which is sensitive with news, fud, pumps and dumps can occur with solid projects.
If you have enough experience, discipline and patience, you can wait for market pump and dump days to take advantage great discount prices and get good profit after a few days.
You don't have to be an influencer and force everyone to buy or sell anything. Be calm as a small participant in the market and enjoy it.
The fact that most good projects have Telegram and Discord channels is not a bad thing, how can you ask questions from the team if the project has no Telegram or Discord group?
Scam projects also have Telegram and Discord channels, because scammers know that Telegram is the fastest way to keep in touch with fooled investors until the mission succeeds.
In addition, you stated that Youtubers should not be relied upon for investment advice. However, not all YouTubers are bad, and some are talking the truth about crypto investments.
I have gotten involved in some projects earlier as a result of watching some Youtube videos.
Scam projects also have Telegram and Discord channels, because scammers know that Telegram is the fastest way to keep in touch with fooled investors until the mission succeeds.
In addition, you stated that Youtubers should not be relied upon for investment advice. However, not all YouTubers are bad, and some are talking the truth about crypto investments.
I have gotten involved in some projects earlier as a result of watching some Youtube videos.
- Any project, that the where the management focus on how one can become rich quickly, than the actual use of the coin are likely scam
- Check the order history of the coin
- Check for any news, that can be tag as red flag for the coin
- Avoid investment ideas from YouTube because they are mainly scam
- Trade with Cautiousness and avoid those coins where the community is based on Telegram or discord
Trust no one in crypto because everyone who is into cryptocurrency, especially altcoin, is there for the money, so even project teams can have misunderstandings due to different points of view and different thoughts just for money, which is why no matter how good or reputable an altcoin is, the coin has a tendency to fall over time.
That is why Bitcoin is the best project to invest in if you want to avoid all of these trust issues with all of these pump-and-dump investors, as you mentioned.
Many people and experienced people probably can make themselves look like a legitimate project, but in essence, it's not. Imagine the big scams that have been so big that they thought it would profit them forever, and that's just going to make them impossibly hard to fail, but it did, like the Terra scams and all the shitty projects that people lost money on.
Be careful when you are trying to join projects, and make sure to invest in what you can afford to lose.
Be careful when you are trying to join projects, and make sure to invest in what you can afford to lose.
The ultimate best advice is to avoid altcoin in totality to avoid any possible risk of getting scam because even the best altcoin project is a scam in operation since their claim to be operating in a decentralized market with a centralized mentality and mechanism that are fraudulently developed to steal investors money on the long run.
That may be the best approach for some people, but we can’t deny the fact that’s it is possible to profit from altcoins, newbies are attracted to the big gains therefore they buy shitcoins. I would compare investments in shitcoins to gambling, I hodl two altcoins which I believe have practical use-cases and have a future. Still I wouldn’t recommend investing in random altcoins for long term, its too risky especially for beginners who do not understand how volatile altcoins are.Yes, staying away from altcoins is the most effective solution, but it is undeniably profitable that altcoins are huge, even better than bitcoin these days. For me, altcoins are for short term investment, I use their profits to accumulate long term bitcoins.
I don't think altcoins will have any use case as they are created with the aim of selling tokens for profit rather than focusing on building practical utilities and applications...So, altcoins are suitable for speculation and, once profitable, never use them again.
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- Trade with Cautiousness and avoid those coins where the community is based on Telegram or discord
Wait what?! How come to the community on telegram and discord can be a sign of red flag for a project while the majority of cypto projects use discord and telegram to interact with their community due to fast communication feature. Even our Bitcointalk has a discord channel despite we are already a forum.
I think you might overlook this one. In terms of community assessment. Those group that has a lot of paid shillers that usually post about their token mooning without any solid proof backing it is what can be considered red flag and not the social media platform itself which the community being host.
And be careful of trading signals you might encounter in several places because they could be pump and dump signals.
People who follow the pump and dump hope to make big profits quickly, which is why people are still trying to follow other people's signals to buy and sell.
And people will try to follow the signals given by some groups because they think it is time to expect profits to come their way. But if they don't want to get scammed from the pump and dump moment, they don't need to invest or trade altcoins and still choose bitcoin as their investment.
People who follow the pump and dump hope to make big profits quickly, which is why people are still trying to follow other people's signals to buy and sell.
And people will try to follow the signals given by some groups because they think it is time to expect profits to come their way. But if they don't want to get scammed from the pump and dump moment, they don't need to invest or trade altcoins and still choose bitcoin as their investment.
I have observed that there exist several "pump dump" groups on Telegram. These groups likely purchase coins before signaling to others and then sell off their shares when traders start buying in. Essentially, these groups orchestrate a pump, but traders are unaware that they will end up losing their funds due to pre-planned selling. I have also heard that certain groups collaborate with project teams to artificially inflate prices and make it easier for the team to sell off their shares. All of this points to market manipulation. In fact, some project owners even pay large social media influencers to pump up their tokens. Therefore, it is wise to steer clear of these groups and avoid quick-rich schemes.
- Avoid investment ideas from YouTube because they are mainly scam
- Trade with Cautiousness and avoid those coins where the community is based on Telegram or discord
- Jay -
- Any project, that the where the management focus on how one can become rich quickly, than the actual use of the coin are likely scam
- Check the order history of the coin
- Check for any news, that can be tag as red flag for the coin
- Avoid investment ideas from YouTube because they are mainly scam
- Trade with Cautiousness and avoid those coins where the community is based on Telegram or discord
1. I don’t think any coin could actually offer any other thing to lure people into crypto currency that bitcoin hasn’t solved yet. The remaining key factor is making promises of huge profits for investors since it is the only thing left out.
2. The funny thing is even if there are news of a possible red flag about a particular coin, altcoin investors actually do not actually care about it. Take the current situation of Ren token dumping because of FTX impact on it, these already suggest the coin won’t survive but with its developers making promise of bring up Ren 2.0 there many investors cycling around it to buy them up now.
3. Reading about investment ideas from either social media platforms or the YouTube isn’t bad but it depends on how one digest it. Take those tips and work on it during your own research.
Overall stay away from Altcoins if your sole purpose is to make cryptocurrency more of an investment but for those looking to get rich through it then could go ahead to gamble funds on them. But there isn’t any guarantee of a return
The ultimate best advice is to avoid altcoin in totality to avoid any possible risk of getting scam because even the best altcoin project is a scam in operation since their claim to be operating in a decentralized market with a centralized mentality and mechanism that are fraudulently developed to steal investors money on the long run.
That may be the best approach for some people, but we can’t deny the fact that’s it is possible to profit from altcoins, newbies are attracted to the big gains therefore they buy shitcoins. I would compare investments in shitcoins to gambling, I hodl two altcoins which I believe have practical use-cases and have a future. Still I wouldn’t recommend investing in random altcoins for long term, its too risky especially for beginners who do not understand how volatile altcoins are. 
The ultimate best advice is to avoid altcoin in totality to avoid any possible risk of getting scam because even the best altcoin project is a scam in operation since their claim to be operating in a decentralized market with a centralized mentality and mechanism that are fraudulently developed to steal investors money on the long run.
- Trade with Cautiousness and avoid those coins where the community is based on Telegram or discord
Unfortunately I think all other points you listed would have happened already. Except for review on them (that is if they still exist after scamming investors). Usually when scammers get on their prey, they disappear from the scene. That is what I have noticed and that is why it is better to trade with caution. Apart from bitcoin or Ethereum , be careful with any other cryptocurrency and invest as you can bear. Back in 2017 to this time, it has been happening, becareful.
There are many ways to easily lose money in crypto and investing on shitcoins believing to get a good profit by holding long is one of such ways. 95% of altcoins are projects with a tagged expiry date and when your investment plan exceeds those of the project developers you're marked for loss. Except in a very few cases that you can get to make some profits with altcoins and got to be very smart with the shortest plan.
To avoid the inevitable risk and tantrum of "had I known", it's better to shift focus on bitcoin but I know those that are fans of get rich quick projects wouldn't see any sense in all of this.
To avoid the inevitable risk and tantrum of "had I known", it's better to shift focus on bitcoin but I know those that are fans of get rich quick projects wouldn't see any sense in all of this.
actually investors who want to put their money in projects that do take advantage of FOMO already know the risks. they know the strategies the developers have devised to get early profits.
project analysis must have been done. especially for new tokens or coins that seem to have abnormal market movements. never hold on to new tokens or coins for too long. when you invest in such coin then sell it as soon as you get profit. not all investors will focus on Bitcoin. some people also like the tokens and coins of the new risky project.
project analysis must have been done. especially for new tokens or coins that seem to have abnormal market movements. never hold on to new tokens or coins for too long. when you invest in such coin then sell it as soon as you get profit. not all investors will focus on Bitcoin. some people also like the tokens and coins of the new risky project.
To avoid pump and dump projects which is common to altcoins, just buy bitcoin. I do not know what I can call Luna, or UST that people thought was a stable coin which depegged, they were once one of the coin with a very huge marketcap that went to nothing in price in just little time.
Pump and dump projects are just one of the ways people can lose money, some projects too are not having good white paper or have nothing to offer but bitcoin or other good altcoin carbon copy, some may not have good developers which can make the project to fail and become like pump and dump project.
Pump and dump projects are just one of the ways people can lose money, some projects too are not having good white paper or have nothing to offer but bitcoin or other good altcoin carbon copy, some may not have good developers which can make the project to fail and become like pump and dump project.
Crypto pump and dump schemes is a means where some group of investors buy / develop a coin or token and tried to make other investors see the coin as a good investment, once they are able to get enough investors to make the coin pump they immediately sell their's and make profits while other investors makes lost from dump.
This is something that is mostly common on shitcoins, most times the developers always tell the investors to HODL, in order for them to sell their's and leave the investors to their fate.
This is among the main reasons why it is always advisable to invest in big cryptocurrency like Bitcoin and Ethereum. While others may be profitable but it should be note worthy that not all altcoins can ever get to a new all time high and this is common with shitcoins. Also people who usually fall into this schemes are those who are interested in just gaining more money without properly doing research. Proper research helps one to avoid investing in wrong or any scam projects. There are lots of ways to know them but I will list some :
For long investment bitcoin is the best and if you are looking for an altcoin the best is still Ethereum because of Solidity (which is use for creating smart contracts)
This is something that is mostly common on shitcoins, most times the developers always tell the investors to HODL, in order for them to sell their's and leave the investors to their fate.
This is among the main reasons why it is always advisable to invest in big cryptocurrency like Bitcoin and Ethereum. While others may be profitable but it should be note worthy that not all altcoins can ever get to a new all time high and this is common with shitcoins. Also people who usually fall into this schemes are those who are interested in just gaining more money without properly doing research. Proper research helps one to avoid investing in wrong or any scam projects. There are lots of ways to know them but I will list some :
- Any project, that the where the management focus on how one can become rich quickly, than the actual use of the coin are likely scam
- Check the order history of the coin
- Check for any news, that can be tag as red flag for the coin
- Avoid investment ideas from YouTube because they are mainly scam
- Trade with Cautiousness and avoid those coins where the community is based on Telegram or discord
For long investment bitcoin is the best and if you are looking for an altcoin the best is still Ethereum because of Solidity (which is use for creating smart contracts)
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