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Author Topic: What means PUMP & DUMP in cryptocurrencies  (Read 188 times)

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What means PUMP & DUMP in cryptocurrencies
« on: December 18, 2017, 09:25:16 am »

Here is the meaning of PUMP & DUMP of cryptocurrencies.

The Pre-pump

Usually a group of people who plan of pumping a coin collude to purchase it at an extremely low price.

The Pump

These people market the coin relentlessly, causing many buyers to create a demand that can only be satisfied at high prices.


The Dump


The pre-pump group cashes out when they think a maximum has been achieved, letting the rest of the buyers fend for themselves, and watching the price crash.
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CryptoInterest

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Re: What means PUMP & DUMP in cryptocurrencies
« Reply #1 on: December 18, 2017, 09:35:34 am »

A pump and dump occurs when people are encouraged to buy a cryptocurrency in-order to artificially inflate the price, and then selling your own coin when the price is high.

Pump and dumps tend to occur more with small market cap cryptocurrencies with a lower trading volume because the price is easier to manipulate.

There are numerous groups with of thousands of people with the aim of pumping and then dumping coins for a quick profit.

Hope this helps!
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