What Is Pump and Dumb?

Pump and dumb in the crypto world is a manipulative scheme carried out to artificially increase the price of crypto assets.

In this scheme, a certain group or individual buys crypto assets in large quantities, resulting in a drastic and rapid increase in price. After the price rises, the perpetrators of this scheme will sell (dump) the asset at a high price to make a profit, often leaving losses for other investors.

This pump and dump practice is considered illegal and detrimental because it involves market manipulation and misleading information. Perpetrators generally use their influence or position to convince others to purchase certain crypto assets, often involving influencers who receive financial incentives. In less regulated crypto markets, these schemes are more difficult to eradicate, so it is important for investors to be careful and conduct in-depth research before investing.

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