Topic: How pump and dump group are damaging reputation of crypto-currency? (Read 424 times)

Yes, the pimping and dumping group did a lot of damaged to cryptocurrency and they doing it through the regulators, government and FUD site or blog poster. Meanwhile, it hard to know those really behind it.

In my opinion I believed the CBOE, CME group etc. Bitcoin future contract is also among the thing the causes the dumping and pumping in price of the crypto currency market because the project was about betting the future price of the market and due to that some certain group or cartel will be formed to in other for the organisation or company to be profitable.

They should know from the start that cryptocurrency has nothing to do with those P&D groups to lurk the exchanges for their own interest, these coins are just an instrument, not the cause why they got ruined by those people you should not always depend on your decisions in trading from those groups cause the admin got the first touch of benefit and earning for the pumps and dumps plus some groups are requiring their applicants to pay a fee just to join and learn their strategies.

it is easy to feel disapointed with the coin that we are holding when its price keep rising and dropping unexpectively all the time, so any trader who wants to have profit from trading cryptos will be very much tired with the fluctuations, and if this happens for a long time then surely traders will be the ones who suffer losses and feel disappointed until to quit their trading job.

Of course the pump and dump groups are damaging the reputation of crypto-cuurency, because in order for them to work and the participant in then to earn money, there are very many newbies in crypto the lose money due to fear of missing out.
After they figure out how they lost money, not only do they stop investing in crypto-currency, but they will also tell to their friends what happened to them and recommend them to never invest in crypto.

Well, the thing with pump and dump groups nowadays is that the admins are the ones earning money. Everyone else are literally just pumping the money in for the admins, because the admins are the ones who buy in the coins for cheap before signals are released.

That itself can mislead a lot of people into thinking that pump and dump groups are a good way of making money, especially newbies. That will definitely impact newbies perception of BTC.

Also, as you mentioned, if you as an outsider see a coin being dumped to the ground all of a sudden and result in massive losses, you tend to be a lot cautious in your approach. Which is actually a good thing in some regards, but still damages the overall reputation of crypto to outsiders. But the overall impact is the biggest on the participants in the pump and dump groups, who will lose money in the long run.

I can't say that cryptocurrency groups of pumps & dumps harm their reputation. There is nothing illegal, and they use their money to raise or to drop the price. Another matter that the newcomers in these groups can lose because only those who are at the top are winners.

Pump and dump groups are indeed giving bad reputation for crypto currency is. I know some of my newbie friends who became prey for such groups. They lost big amount participating in pump and dump groups. Some of them even left crypto after these incidents.

It really depends on the project or the coin. A very promising coin that is backed up by legitimate investors and run by brilliant devs and invidividuals won't experience this kind of dumping in just a very short period of time. There are lots of groups in discord right now that are trying to invite people and giving signals on to where to pump and dump. I know this is somewhat a manipulation or a strategy but it could severely give bad impact on a particular coin or project.


I agree with you on this. We really need to do our homework before investing our money to a certain project for us to avoid any losses in the future. Investing in crypto is very risky due to its volatility and there are lots of scam ICOs happening right now.

By knowing the background or the people behind the project you can really tell that the altcoin is a promising one. We should also verify the credibility of the devs working on it and the technology that it can bring to the society.

When it comes to the thought that you said about "pump and dump doesn't hurt anyone" I kinda don't agree with this since pump and dump could really affect the value of the coin. I know this is strategy of some groups of people to earn profit but mostly they are doing this to a certain coin that they think is vulnerable to this kinds of manipulation.

When I started trading I used such signals. Then stopped-after the first losses of money.

the reputation of altcoins are already damaged beyond repair because of the true nature of them and also the fact that investors in altcoins care about one thing and nothing else and that is earning more profit. so when people are asking for pump and dumps to happen and are actually happy about it, there is no reputation to be damaged.

also i should add that if a project is really good, for example some altcoin outside of top 10 coins that is focusing on becoming a real currency instead of being pumped and dumped then nothing can damage its reputation ever. you can see bitcoin and the fact that even when they call it "fraud" nobody cares and they only laugh at the person saying it.

Actually these pump and dump schemes are the reason why many people are losing their faith on cryptocurrencies.
Some greedy beginners who invest in these schemes never comeback after losing everything they have on their first attempt, the problem is just lack of knowledge, they just want to become rich but never bother to learn about the background and technology of the coin in which they are going to invest.

Not only BTC market is affected by "Pump and dump" (P&D), this practice is in every trading market. Take example of Equity Trading for instance, you can see huge market swing in both direction (up and down) on any single trading day. That manipulation is done by Big investors who are holding majority of the shares. Although BTC is decentralized and distributed ecosystem, still there are WHALES who have gathered majority of BTC over times and now are in a position to manipulate the BTC market. Rule of thumb is to keep your nerves strong and never ever pay attention to P&D and FUD, HODL is key to success in every market and holds true for crypto market as well.

I also think that pump and dump groups are damaging that specific coin's reputation in very long term people dislike coins like that so I think noone should care about pump dump groups, they are profitable only for group owner anyways.

I think pump and dump group doesn't hurt anyone, infact it makes the crypto trading become more interesting, people need to learn before they invest, if they don't do their research and just put the money then it's their fault, pump and dump group give more exciting chance to make profit

It all depends on the volume of trading of a particular coin on the market. And not always such a fall can speak for that it is a shitcoin, if almost the entire market is in correction. One bad thing is that there are a lot of hamsters in the market who create such situations and discourage others.

It's easy to manipulate the market if there are a big group or popular media that is under it like making news with a known channel, but if it is just a small community at telegram or Facebook, only those who just hoping for easy money will be bait in that trap.

Actually, I can that almost all market has a group of people that like to manipulate the price. Even in traditional Stock even forex market. The difference is that crypto market is still young and thin. These makes the price manipulation in crypto market have more significant effect compared to the other market. My point is that price manipulation unavoidable. Our only hope is that the crypto market will grow even more, and the distribution and adoption is wider.

Actually, there are large groups that sometimes try to pump and dump a coin even with high volumes. Most of the members of these groups are huge buyers sometimes called as "Whale Pump" and earn huge profits. I am not exactly familiar with how they do things but I do know that they target coins such as EOS, POWR, GVT, etc

I have seen more than dozens of coins being totally manipulated with only one ending -> killing the price, and trying to milk out all the money from it.

I have seen coins going from $0,002 to more than $0,02 in less than a few hours, and then going down to nearly zero.

It is simple, but it kills the project.

a low volume coin could easily manipulated but no with the high volume , if that what you mean then that's true , I couldn't agree more. It was a fraud that no one knows especially a newcomer.
For the first time they might would feel that's a crazy market , unbelievable and sucks experience. But you know it won't happened last forever , you'll get sweet profit and realize that the last time it was a pump and dump did intentionally not an ordinary market.

The most important thing before investing is to learn about the market and understand the purpose of the coin or token before investing as there are many coins aimed at just dump and pump and since this is a unregulated market expect these kind of coins and make sure you only invest in top coins in the market rather than going for dump coins.

i dont think they pump and dump group gives bad reputation to the crypto because its been only said on the name that they are pump and dump which means they can manipulate the coin. Any users who join it wil surely know it and i hope that they are also aware that cryptos are volatile which means it can fluctuate non stop resulting for its value to increase and decrease without a warning. groups doesnt give a bad name bad the mechanics of crypto itself gives them a doubt.

For newbie people who just came in and engage theirselves into crypto without any further knowlegde and awareness on possible risk then most of the time they would really heading this way.This do really make bad impression towards crypto but as crypto lovers and investors we do know the truth thing which it gives advantage for us investors.

I have a similar example. I have an OBSIDIAN coin that cost more than $ 2.5. Now it costs 0.1 dollar. I agree, we just have to be patient.

Firstly, the crypto market is unregulated unlike other markets like Forex, stocks or shares market. This gives the bulk hodlers a freedom to conduct pump and dump. Secondly, there are lots of unskilled and rookie investors in crypto who blindly follow these Twitteratis and Telegram groups. I have seen these admins manipulating the followers. They buy before and then announce in group to short profits. It would be tough to escape this situation unless the distribution becomes more diversified.

due to recent market downfall, we won't see pump and dump groups working all expect crypto traders vanished from the market bitcoin stabilized in between 6000 $ to 8000 $  no telegrams signals will work at this point of market

Really???

You know; stealing, mugging, holdap, carnapping, kidnap for ransom, dealing illegal drugs, human trafficking, etc. are ways to to earn as well?  But do you realize these are wrong?  Market manipulation (which what P&D is) is illegal and morally wrong!

I'm extremely against the P&D groups and their market manipulation theory.
The reason is simple, very few participants will be gainer and the maximum will be bagholders if the pump & dump operation is for a shit coin.
Usually, the p&d group team members are the ones who get the benefit from every operation and the ordinary participants get busted.

Of course, it is discouraging newbies from cryptocurrency investment/trading sector.
If a newbie starts his/her journey of trading by participating in p&d and becomes a bagholder then he/she most probably will lose the interest on cryptocurrency.

In my opinion, steady growth with people's pure interset is much better.

I believe the pump and dump in crypto sphere isn't limited to only small cap coins. Even large cap coins and BTC itself gets pumped and dumped. We did see Bitcoin getting pumped and dumped using futures trading these 3.5 months. Also ETH being the victim too. In this market, the distribution isn't equal. Some 1%-2% are hodling the maximum percentage of the total mcap. Thus, having this pump and dump where investors aren't that skilled become easy and small investors become easy target for those Telegram groups.

well
if that coin is useless coin , just like a easy way to get money.
but if that a good , like a top 100 coinmarket.
i think they need a big money to make a pump dump scheme.
about newbie , i believe more exchanges sites already announced about crypto currency is very fluctuactive
considering exchanges sites its a initial steps to get started

I invested $500 in an ico, now it is only $50, I never invest in pump dump coins and some coins hyped by groups but ico always makes me lose money.

About a not shitcoin: pump-and-dumps increase the popularity of crypto currency. But difficult to rate the reputation.

Do not worth buying coins that can pump groups from social networks. These are illiquid coins and it are easy to drive.

Because in any other regulated market in the world that is taken seriously this is illegal. I know this market isn't regulated yet but if we want to be taken seriously this behavior has to stop soon. However, I know that without a law in place it will happen until the very moment that law gets passed. Regulation couldn't get to crypto any quicker.

Not exactly damaging the reputation, pump and dump is definitely one way to earn. Even sometimes in stock market it does happen. Effects can be negative or positive depend on your situation. Others do earn while others experience losses. It does happen to coins which doesn't have a long term goal so we can call it shitcoin.

No, it is necessary to get used to the fact that cryptocurrency is a volatile tool and take into account the high volatility when making transactions.

This is real. There are so many telegram groups that is intended for a pump and dump act. These groups are mostly composed of at least ten thousand members. They have this schedule on when they will announce what coin to buy and in which exchange. After the announcement, the pump will begin and then the members of this group will start trolling in the chatbox of the exchange, engaging other people to look at the sudden rise of the price. The outsiders will of course take the bait and invest and then after meeting their profit (200% atmost), they will start to exit and dump all of the coins. Thus, the coin loses its actual price, leaving it all dry.

I agree with you pump and dump will always be there, I will just follow their game pattern, I am more afraid of scam coins.

That groups may be independent of coin, they can't pump every coin but they can pump most coin depending on the power of group so it is not about coins but coins with low market cap are more vulnerable.

Pump and dump will always exist it is just the nature of the game. Better not to worry about it, as long as you avoid the scamcoins then it should not really matter, the price will eventually be corrected =)

Most of the bump and dump group give the signals on some exchanges via their twitter or telegram channels usually. They cannot hold the dump or pump for more than 1 hour. As I checked one person this is the maximum time they can rule the price.
Do you want to find the bitcoin grow in the market means these group will not be a helpful one as I know.
They can only rule with the cheap tokens and cheap coins only.

If you quit cryptocurrencies because of that, then you are not mature enough for this business and it's better that you stay away. You should learn something from such situation and study the coin before you invest in it. If the price is raising without reason and coin is overrated, than you can know that it's just a pump and dump and you need to be aware of risk. If you're buying some shitcoin just because it's growing than you will soon regret it and it's completely your fault, not fault of pump and dump group.

maybe you need to rethink your view of the altcoins then. some thing that can easily lose 99% of its value is not something that is worth even existing let alone being used or traded!

i wouldn't call it fraud but the word "shitcoin" comes to mind. i mean 99% drop is unbelievable! and it happens every day. and people with half a brain wouldn't just be discourage, they will instead go back to things that matter meaning back to bitcoin.

these groups are also people. but people who are taking advantage of this situation with altcoins. and others don't mind it either because the only thing that everyone in altcoin market cares about is profit and nothing else.

Actually, pump and dump groups are illegal in other more regulated markets outside of the crypto sphere. Hopefully in time, it will become illegal within the crypto-market too, and anyone participating in pump and dump groups will be treated as criminals and be locked up.

Because they are controlling and manipulating the market. They can do whatever they want with the market because they have a lot of funds to manipulated the market.
Some people arguing about that they are luring newcomers to FOMO the coin and they bought at high price and then the pump group was dumping it again.

Pump and dump groups are always in any market, the reason why their effect is always significant in the space is that the market is still thin when we compare the trading volume in the space to traditional market. I still believe there will be a time when the market has grown and matured that 1% price movement will be seen has a huge price movement

I once hold a coin and suddenly the coin that is almost $1 dump to less than $0.01 to me I move on but to some people  which are newbies this can discourage them from participating in crytocurrency and make them conclude it is fraud and that brought me to a question how do you think pump and dump group are damaging crypto-currency and it's reputation??