Newbies who buy pumped altcoins will be discouraged when the price falls and might decide to completely do away with cryptos.
I agree on this because after the pump there are lots of soul that lost their capital. They have given their BTC in exchange of bagholding useless coins. But in fairness to the pump group, if you timed them well you will get rich in no time. So basically this is one group of winner and another group of people bagholding worthless coins.