As the initial buying causes a rise in price, the entity behind the buying will begin to promote the asset, generally in informal media. As more people jump into buying, the price will rise further, and people will tend to get excited about the prospect of further gains.
The entity that was behind the initial buying and publicity push is now ready to cash out their holdings at a much higher price level, and lock in some big gains. Anyone who has come to the market late in the cycle will be stuck with the asset and no more buyers, which is the end of the scheme.
In general, once the initial buyer who began the scheme exists the markets, and the publicity campaign wanes, the prices will fall, and anyone who holds the shares or tokens will see big losses. That, in short, is the pump and dump scheme.
Actually it was a old concept and repeated at every period. It was a similar phenomenon in the bitcoin itself. Now the price of bitcoin was in the step of 40k$.But same bitcoin price was struggled to reach of 20k$ over a period.The people who hold their bitcoin at the period of dump, had get double the profit now. Many people became a millionaire for now with this raise in bitcoin price.