{"id":7325,"date":"2023-08-08T20:21:33","date_gmt":"2023-08-08T12:21:33","guid":{"rendered":"https:\/\/tracker57.com\/?p=7325"},"modified":"2023-08-14T16:51:10","modified_gmt":"2023-08-14T08:51:10","slug":"what-is-cryptocurrency-pump-and-dump","status":"publish","type":"post","link":"https:\/\/tracker57.com\/business\/what-is-cryptocurrency-pump-and-dump\/","title":{"rendered":"What is Cryptocurrency Pump and Dump?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The market of cryptocurrencies has witnessed remarkable progress over the years, captivating millions of investors and traders worldwide. However, alongside this surge in popularity, certain unethical practices have also emerged, with pump-and-dump crypto schemes being one of the most infamous. In the context of crypto, pump and dump refers to a manipulative scheme devised to artificially inflate the value of a cryptocurrency, followed by a sudden sell-off, leaving unsuspecting investors with significant losses. This article will explore the mechanics of these schemes and the warning signs to be aware of.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a pump-and-dump scheme, a collective of individuals, commonly known as &#8220;pumpers&#8221;, work together to artificially inflate the value of a particular crypto. They accomplish this by disseminating deceptive or exaggerated information regarding the coin&#8217;s potential, instilling a sense of urgency and FOMO in potential investors. As more individuals rush to purchase crypto, demand skyrockets, resulting in a rapid surge in its price.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The pumpers, who have amassed a considerable amount of the cryptocurrency before the scheme&#8217;s commencement, exploit the artificially inflated price to lucratively sell their holdings. This subsequent mass selling leads to a drastic crash in price, resulting in substantial losses for latecomers or less knowledgeable investors.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_60 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\" role=\"button\"><label for=\"item-6628b1f467d4e\" ><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input aria-label=\"Toggle\" aria-label=\"item-6628b1f467d4e\"  type=\"checkbox\" id=\"item-6628b1f467d4e\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/tracker57.com\/business\/what-is-cryptocurrency-pump-and-dump\/#How_to_Pump_and_Dump_Crypto\" title=\"How to Pump and Dump Crypto?\">How to Pump and Dump Crypto?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/tracker57.com\/business\/what-is-cryptocurrency-pump-and-dump\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Pump_and_Dump_Crypto\"><\/span><b>How to Pump and Dump Crypto?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here is how it works:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coordination. Pump and dump schemes frequently happen in online forums, social media platforms, or chat groups, providing a convenient platform for the pumpers to coordinate their actions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Selection of cryptocurrency. Pumpers typically focus on cryptos with low market capitalization and liquidity, such as DOGE, SHIBA, and\u00a0<\/span><a href=\"https:\/\/blog.whitebit.com\/en\/froge-coin\/\"><span style=\"font-weight: 400;\">Froge<\/span><\/a><span style=\"font-weight: 400;\">. These coins are more vulnerable to manipulation as even a small amount of funds can result in substantial price fluctuations. However, Bitcoin pump-and-dump schemes also take place.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hype and promotion. Pumpers employ different tactics to generate excitement around a specific asset. They may generate positive news, share misleading information, or promote unrealistic price predictions to attract unsuspecting investors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The surge in demand. With the increasing influence of hype and an optimistic outlook, more investors are compelled to purchase cryptocurrency, leading to a surge in demand and price.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mass sell-off. Once the price hits a specific threshold or the pumpers believe they have maximized their earnings, they trigger widespread selling, inducing panic among fellow investors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Price crash. As a result of the sudden influx of sell orders, the price of the asset plummets rapidly, causing substantial losses for those who purchased at the highest point.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Pump and dump schemes continue to pose a significant threat in the crypto industry. As the market evolves, investors should stay alert and exercise caution. To identify artificial price increases, check out a\u00a0<\/span><a href=\"https:\/\/whitebit.com\/markets\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">crypto price list<\/span><\/a><span style=\"font-weight: 400;\">\u00a0on reliable platforms. Pay attention to long-term price charts. The main sign of a reliable digital asset is the absence of sharp price surges and drops. So be cautious and conduct proper research to protect yourself from falling victim to such fraudulent practices.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the dynamic landscape of cryptocurrency, the rise of pump-and-dump schemes serves as a cautionary tale for investors and traders. These manipulative tactics, driven by deception and coordinated efforts, exploit the vulnerabilities of certain low-cap coins, leaving unsuspecting participants facing substantial losses. Awareness of the mechanics behind these schemes, coupled with vigilant research and skepticism, is paramount in safeguarding oneself against such fraudulent practices. As the crypto market matures, staying informed and discerning will remain essential tools in navigating its complexities and avoiding the pitfalls of pump-and-dump schemes.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The market of cryptocurrencies has witnessed remarkable progress over the years, captivating millions of investors and traders worldwide. However, alongside&#8230;<\/p>\n","protected":false},"author":5,"featured_media":7326,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"default","_kad_post_title":"default","_kad_post_layout":"default","_kad_post_sidebar_id":"","_kad_post_content_style":"default","_kad_post_vertical_padding":"default","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[166],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Cryptocurrency Pump and Dump?<\/title>\n<meta name=\"description\" content=\"Pump and dump schemes continue to pose a significant threat in the crypto industry. As the market evolves, investors should stay alert and exercise caution. 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