CRYPTO GLOSSARY · RISK

What is Pump and Dump?

Coordinated price manipulation scheme.

📖 Full Definition

A pump and dump is a fraudulent scheme where a group artificially inflates a cryptocurrency's price ("pump") through coordinated buying and misleading promotion, then sells at the peak ("dump"), leaving other investors with losses.

💡 Example

Many low-cap altcoins fall victim to pump and dump schemes coordinated on Telegram or Discord.

🔗 Related Terms

Rug Pull

Crypto scam where developers steal funds.

Shitcoin

Cryptocurrency with little value or use case.

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