Technique

Pump and Dump

Definition

A scheme where scammers artificially inflate (pump) the price of an asset through false statements and hype, then sell their holdings (dump) at the inflated price, causing the price to crash and leaving other investors with losses.

Real Examples

1Elon Musk tweets causing crypto price spikes (unintentional)
2Penny stock manipulation through social media
3Coordinated crypto pump groups on Telegram

Related Terms

Rug Pull FOMO (Fear of Missing Out)

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