pump & dump (P&D)

what means 'pump & dump'?

Pump & dump is a common method to manipulate low capitalized cryptocurrencies. There are two different kinds of P&D groups:

  1. Case 1 – Several investors or a whole community organizes itself and agree on buying a large amount of coins all at once. Greater demand increases the cryptocurrencies’ short-term value. Consequently the group is deciding to sell all stakes at once at a higher price and generate profits. 
  2. Case 2– A small group or and individual is trying to increase a low capitalized cryptocurrency by spreading misinformation trying to increase its short-term value. Consequently the individual or group will sell its stakes as soon as price levels have been elevated.
Pump & dump groups are not recommendable as these are mostly fraudulent and only few participants will eventually make profits while the majority will have to take huge losses into account.
Scroll to Top