Crypto GlossaryPump&Dump
Pump&Dump
This is a type of manipulation carried out by a group of investors who coordinate to buy up large amounts of an asset, driving up demand and causing the price to rise rapidly. Once the price has been artificially inflated, the group then sells its shares at a profit, causing the price to plummet back down to its original level or lower. This leaves other investors who purchased the asset at the inflated price with significant losses.
Pump and dump schemes are illegal and considered a form of market manipulation. They can also have serious consequences for investors who are caught up in the scheme, as they may lose significant amounts of money if they buy in at an inflated price.
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