Topic: PSA: Pump and Dump - aka, the Newbie Trap. - page 2. (Read 824 times)

Was messing around with google analytics. Seems with recent price declines, the fervour of January has worn off slightly

Surprisingly low number of searches though!

https://trends.google.com/trends/explore?q=%2Fm%2F01j8p9

There are possibly ways to make that work. But you'd need to have some sort of inside view on what the PnD groups are picking, and would have to be OK with parking money on the gamble that they might never hit it.

You'd never get 5x or 10x off a PnD anyhow, tbh - more along the lines of 0-50%. (or a minus, as most get heh).

From what i hear, if you can figure out some sort of pattern to know which coins are more likely to be pumped and dumped, you can take advantage ahead of time.

For example:
- you identify a coin that gets pumped and dumped from time to time (over the course of months)
- you invest in that coin ahead of time leaving it on the exchange
- you put in a sell order 5x to 10x the buy price

You wait and check your sell order from time to time to see if the coin got pumped.
You basically have to treat your money as lost and come back to a potential 5x to 10x return.

Anybody have experience doing this with success ?

Thanks for sharing that with us newbies. Happened to me in a XZC pump. Lost $20 on that but hell I am still hodl because you never know.

Thanks for sharing your story and the helpful information!

So impressive to read this OP made by a Jr. I feel relieved from so many posts with nonsense content.

This is the best thread I've read since I joined the forum! So much thanks for the advice, If I'm the merit giver I would like to give a merit to you. I want to read threads like this. Thanks for sharing your experience! 

I looked at these pump and dumps last year but could not for the life of me get myself to try it. I mean that's really just too good to be true. I am not a gambler.. But yes I can understand how they suck people in to that. Very interesting post, Thank you

Great post.

There always will be liquidity problem with those not popular coins.
Pump and dump is the way of getting liquidity to the market to get rid of those coins.

Well this is interesting....

http://www.cftc.gov/idc/groups/public/@customerprotection/documents/file/customeradvisory_pumpdump0218.pdf

It's really trap.

Moreover it could be trap even you didn't spend money to get coins.
I participated in AIGANG bounty and got some AIX. The price of ICO was 0,36$.
On the high the price was 5$. I sold only 1/3 of my AIXs. Now the price is only 0,6$...And I don't know what should I do..
My 2/3 is still approximately 650$, but when I think that it could be more than 5000$..  
So it's good lesson for me.

This is the easiest traps newbies may fall into: pump and dumps. The organizers of this said event in exchanges really make sure that their prospects will take the bait, and the poor newbies unknowingly will buy into their scams while the organizers already have a comfortable position in the market. The massive spike in price is what entice newbies into buying and allotting a part of their bank rolls into some obvious money-grabbing scheme. I myself have been a part of pump and dump groups, and I look to Fontase and other handles as the gods of trading and profit since they gain massive profits in just a short span of time. I profited from there, yes, but sometimes, the masterminds of the said group would willingly dump on his members and play innocent in the end.

Only people who hasn't done enough research joins these kind of groups and schemes. Profits that came off clean is still better than deceiving a lot of people to buy your bags in hopes of them getting some profits in return.

Thanks for sharing, it was an excellent, highly informative, easy read. I'm glad you didn't lose too much on the way to this lesson, and I also echo many other readers who say you should consider being a writer! 
This topic really deserves to be pinned or at least commented on regularly so it stays somewhere at the top of the Help section - essential reading for everyone, but especially newbies!

Great information.  Thank you for sharing and glad you didn't lose too much.

From op story he has really learn a lot and from what he has shared I hope some of us take precautions. Pump and dump group are not were you should begin as a traders or investors but you can only used some of the plan as a guide for investment. Most of them used the group in other to pump a coin and dump it on the head of amatuar traders.

Great article indeed.
I also wish I had seen it back in January because I also took part in a pump and dump thinking it is a nice little earner. Turned out to be a real piece of ... well you know!
A very important thing to remember is that you will get the coin that will be pumped at an exact time just like you said, 19:00 CET for example. And now everybody is waiting for it. As soon as the coin is announced people start buying and the exchange freezes. Thats what happened when I did it. The exchange froze because of the traffic and was not responsive for a few seconds. By the time I pressed on buy the price had gone up over 50%.
Once my order was filled the price was down to 20-25% So in just a few seconds the price dropped drastically and it never even reached those 50% or 40% again.

A lesson well learned. This does not work! actually it works really well for the few leaders of the group who dump their cheap coins on everybody else but for you and me this will not work. Its a rigged game and you lost before you could even move your mouse courser to SELL.

I didnt sell the coins i bought in the bump at all. i kept it as part of my portfolio.  It doesnt look like a bad coin and during Jan 2018 had a value of $10+ so maybe it gets halfway back there before I sell it or reaches new highs once the market starts blooming.

 

Great post - I believe this can happen only in markets that are very thinly traded, which are the coins that are the targets of this scheme.  It simply doesn't work with more volume.  So I don't think it's regulation that will solve something like this - it's just best to simply avoid coins that have very little activity. 

I think that there might be room for a longer-term play, however, in that if the project itself is actually legit and has a decent community, it's possible that AFTER the dump, when the coin is at rock-bottom, it might be worth it to pick up some, especially if you yourself will participate in the use of the coin itself, for whatever utilitarian value it may have.

Thank you a lot for your explanation!

I think it's a long way off before we see any sort of regulation, to be honest. And even if we do, it'll have to be regulation by the crypto-world standards - decentralisation will be a major issue there. We'll have the "Regulate it" versus the "Nobody owns me!" crowd, and it'll descend into nothing.

In the meantime, awareness is a good start, I hope.