Topic: What is "pump-and-dump"? (Read 548 times)

Yes you might be right. But in crypto world, pump and dump can also mean as up and down of the price of coin.

In my opinion the worst thing is to get into pumpanddump time, cause people easily doing everything to get the most and at the end they are with nothing.

Pump and dump is really no good. Scammers are the only one enjoying the profit and members get left behind. Thanks for the information, it helps a lot to contemplate and not get involve in pump and dump scheme.

This is my first post.  I have  been looking at  this forum for a while and decided to register  to get involved.
I  cannot believe  that there are dedicated groups existing to kind of manipulate the price of coins.
I do not have any coins yet but I need to learn which coin to buy and at what price.
Are there any coins without any pump and dump groups ?

whether it is true or  not. this thread leads you to react/think twice before you go in it, i mean you have to think twice before you go to buy some coins to got profit. it is the other term by means of pump and dump so i thanks for making this thread really apreciate it.

thanks for this tons of information. and i think it will change my mindset for what is dump and pump by your own definition. now im aware for those ICO who really creates some coins to manipulate people and make them some profit and we didnt notice they intentions. i stick to bitcoin now not to the other coins.

There are pumping groups but they are just scams. I don't recommend them. They work like this, you join the group, 1 guy is giving a signal to pump and everyone on this group is buying particular altcoin. Owners of those groups are just buying 1 minute earlier and they are using bots to dump! Someone has to lose in order to gain profit

If somethings going a sharp up or down, it has to have some reasons. If you can't find any, your are experiencing pump and dump.
Trader should think for themselves why would people use this coin?

My friend who recommended me to the whole bitcoin experience explicitly told me to not get into pump and dumps. People get hyped u p and by at the top and ultimately get rekt. Not something I want to be a part of.

Well thought and articulate post my friend. I thoroughly enjoyed and learned some good knowledge from your post just now. I knew vaguely about P n D schemes but not fully.

Your explanation helps a ton, and btw fwiw I agree on the ICO bit. Most will fail in the end, but that does not you mean you cant make a quick buck now. I think thats why most

people are going for ICOs, trying to get in on a hot one and get some money quick.

This is what "pump-and-dump" means:


If you want to define it the "simple" (naive) way, then that is up to you. But the problem with that definition is that in a pump-and-dump scam, the rise in price is the result of the pump, and the fall in price is the result of the scam. However you want to define it, you must be aware that "pump-and-dump" is a scam, and if you are involved but you aren't running the scam, then you are the intended victim.

One way the scam is done is through a pump-and-dump "group". The operator of the group invites people to join, saying that everyone in the group will benefit by pumping up the price of a coin and then dumping it (exploiting the naive definition). Here is how it really works:

• 1. The scammer forms a pump-and-dump group.
• 2. The scammer buys up a coin slowly in order to minimally affect the price.
• 3. The scammer announces to the group that a "pump" will begin at a certain time. This is the real pump.
• 4. The "pump" begins, members start buying, the price rises, and the scammer starts selling. This is the real dump.
• 5. The "pump" ends when the scammer has sold all of their coins and when the members have bought all they will buy.
• 6. The "dump" begins as members try to unload, but there are no buyers. The scammer sits back and watches the carnage.

Another way the scam is done is simply to put out a newsletter or service that announces when the prices of coins are expected to rise. The people that follow that newsletter or service are the intended victims. The scammer buys up a coin slowly in order to minimally affect the price and then announces that they expect the price to rise and that followers should buy it now. Of course, the price rises as followers buy, and the scammer sells for a profit, leaving everyone else with worthless coins. The price eventually drops because there is no real reason to own the coins, and everyone dumps their coins.

Finally, the biggest pump-and-dump scams these days are the ICOs. It seems that owners of cryptocurrencies will believe anything and will buy anything in the hope of striking it big. Of course, some of these ICOs are well-intentioned, but they are start-ups and most start-ups fail. The rest are just scams. I believe that less that 1% of the ICOs being sold will actually be successful in the end.