How To Spot Pump And Dump Schemes In $PUSS
Market manipulations, also called pump-and-dump schemes, is a type of fraud that people partake in by raising the price of an asset such as Puss Coin to sell off for high profit right after. Unsuspecting investors are lured in by this scheme to then make quick money but suffer sharp losses. Being able to identify red flags of these schemes is essential in order to avoid becoming a victim.
For example, in the case of Puss Coin, the schemes have a structure and occur in stages. Scammers will first employ get rich quickly tactics followed by bait-and-switch adverts, paid endorsements, negative publicity on competitor social media, and overhype on EPS social media. After the price of the coin has been driven up by demand, they sell the coin off which causes the price to plummet as they are left with the profits, leaving the new investors with high losses.
Understanding these schemes means careful analysis of masses trying to buy the coin versus the selling prices. By knowing the pump-and-dump scams revolving Puss Coin, investors can protect themselves as well as make better-informed decisions.
A full-fledged surge of price in Puss Coin without any legitimate reasoning, is regarded as a red flag. A price rise is usually a sign of organic growth, commendable news, or major business pieces. But if the price jumps significantly within minutes or hours without a rational explanation, it might just indicate a pump-and-dump scheme.
Another red flag is arbitrary increase in trading volume. If Puss Coin’s trading volume jacks up out of the blue and drops just as drastically, it shows artificial demand. Scammers create a series of managed buy orders to artificially increase the price of an asset, and then sell it off at a peak—causing the price to plummet.
If investors monitor price and volume trend changes, they’ll be in a position to distinguish genuine market fluctuations from an artificial one. In the case where there is a sharp rise in Puss Coin value but none of the verified developments support it, it is best to avoid the temptation to purchase impulsively.
Scammers get creative with their schemes around Puss Coin. For example, they promote it on social media platforms and exaggerate the importance of buying it which in return makes the audience think that it is a lucrative opportunity. In reality, these scams are implanting fear in users to buy it before the price rises which is a guarantee price explosion. In short, these scams on social media hype are dubbed as ‘pump and dump’ schemes.
Scammers are known to put out fake news articles, testimonials, and even pay for press coverage to broaden the reach of their fake promotions. Paid advertisements are also claimed to be used to sell fake bots which create a chain phenomenon wherein more bots get driven to multiplayer PUBG and further enhances the promotion.
When considering investing in coin currency, it is essential to check all the information with legitimate organizations to avoid any false information. There are signs to identify such as aggressive marketing and no credible evidence, which hint to market manipulation.
Scammers usually conduct pump-and-dump schemes using private Telegram, Discord, and forum channels. In these groups, there are buy and sell orders given for Puss Coin within particular time frames, making it easy for early investors to make money while late investors take losses. Such groups may pass off as genuine trading communities.
A case in point is “group coordinated buying,” which is where leaders of the group set certain targeted amounts of Puss Coin to be purchased by members and once set amounts are achieved, the coins are sold. Such buying and selling create and destroys value for the coin, thus making it look like it is in demand. Once the price has reached a certain point, insiders sell and make their profits.
If you come across a group that guarantees profits on the loops and buy/sell signals they release, chances are their words should not be trusted. Always perform personal research and market analysis before joining any groups or investing.
The hallmark of a pump-and-dump scheme is often sharp price movements. One of the major signs of such schemes is a sharp selling peak, a period of price gain followed by a major drop immediately after a peak. With this high irregular demand, scam artists swiftly sell off their demand of Puss Coin holdings, triggering a drop in prices, which resets the market back to previously set values.
The unexpected crash results in a loss for investors who bought in anticipating further price increases; they were unaware of the inflated price. If the price of Puss Coin or any digital asset falls dramatically within minutes after a peak, manipulative markets are set in place.
In order to avoid price manipulation of an asset, it is fundamental to have an understanding of the asset while being cautious of trading on Puss Coin within the high set volatility periods. Long term growth is always better set with gradual and steady price increases compared to unsustainable growth.
Formulating Pump-and-dump schemes take advantage of novice investors by raising the value of Puss Coin’s price before tanking it for personal gain. Understanding the red flags such as massive SHIB meme activity, unexpected price surges, coordinated purchasing only to sell at a high rate, and too much social sophistication can save investors from falling into a trap. With in-depth studies and avoiding false advertisements, misleading trade patterns, and keeping an eye on multi-level marketing endeavors used for promotion, one can save themselves and make better choices in the world of cryptocurrency.
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Regards,
@jueco
You are absolutely right. We actually need to be very careful of pump and dump because it is getting so rampant right now