Dump

In the context of cryptocurrency, a "dump" refers to a significant and rapid decrease in the price of a particular cryptocurrency or the overall cryptocurrency market. It typically occurs when a large number of investors sell off their holdings, leading to a sharp decline in prices.

Examples and cases:

1. Bitcoin Flash Crash (May 19, 2021): Bitcoin experienced a sudden and severe dump, dropping from around $42,000 to below $30,000 in a matter of hours. This dump was attributed to various factors, including Elon Musk's tweets about Bitcoin's environmental impact and concerns over regulatory crackdowns in China.
2. Altcoin Sell-Off (2018): During the cryptocurrency market downturn in 2018, many altcoins experienced significant dumps as investors lost confidence in the viability of these projects. Coins like Ripple (XRP), Ethereum (ETH), and Litecoin (LTC) saw their prices plummet amidst a broader market sell-off.
3. Pump and Dump Schemes: Some malicious actors engage in "pump and dump" schemes, where they artificially inflate the price of a low-cap cryptocurrency through coordinated buying, then sell off their holdings at the peak, causing a dump. This leaves unsuspecting investors with significant losses.
4. Whale Sell-Offs: Large holders of cryptocurrencies, known as "whales", can trigger dumps by selling off substantial portions of their holdings. A notable example is the Mt. Gox trustee selling off thousands of Bitcoins seized from the defunct exchange, contributing to market instability.

In summary, a dump in cryptocurrency refers to a sudden and significant decrease in price, often influenced by factors such as market sentiment, regulatory news, or manipulative activities.