A fraudulent scheme in the crypto market where a token is artificially inflated and then rapidly sold off.
How it works:
Unsuspecting investors who bought at the top are left with losses, while the token is often abandoned or disappears entirely from the market.
Possible signs of a pump and dump:
How it works:
- Step 1: Scammers choose a little-known or low-liquidity token—or create their own.
- Step 2: They launch a shilling campaign in chats, social media, and through fake news or insider tips to create hype and drive up demand (the ‘pump’).
- Step 3: Once the price peaks, the organizers sell their tokens (the ‘dump’), securing profits. The price then crashes.
Unsuspecting investors who bought at the top are left with losses, while the token is often abandoned or disappears entirely from the market.
Possible signs of a pump and dump:
- Sudden, sharp price spikes without news or fundamental reasons;
- Anonymous project team;
- Aggressive marketing with promises of huge returns;
- Lack of verification or listing on major exchanges.