What is a Pump and Dump?. A pump and dump is a coordinated scheme to inflate a token’s price and then sell into the hype, leaving late buyers with losses.
How it works
Promoters seed excitement with false claims or limited float, drive price up, then unload holdings rapidly.
Why it matters
Recognizing these patterns protects capital and reputation.
Common pitfalls
- Buying because of celebrity or anonymous tips
- Trading tokens with no disclosure or audits
- Ignoring liquidity and holder concentration
Quick example
Volume spikes on a low‑float token following unreal claims; after insiders sell, price collapses.
See also
- Liquidity
- DYOR
- Rug Pull
TL;DR: What is a Pump and Dump? defined in plain English with practical next steps.
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