Pump And Dump Signal Group Explained #001

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Hello crypto friends,

It another beautiful day and I feel very happy to come before you today again to discuss on another issue of great importance.

I believe you are all doing perfectly fine and are enjoying your activities in the community today.

It is very important that as crypto enthusiasts, we learn to keep our assets very secured and safe from crypto scammers.

Obviously it becomes increasingly difficult to keep our asset safe as scammers surface with new ways in which they attack users.
That being the case, I am here to explain in details woke methods used by scammers to hack into one's account.

Please stay tuned

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PUMP AND DUMP SIGNAL GROUP

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Pump and dump signal group can be explained to be an organized effort when individuals come together to artificially increase the price of a financial asset e.g cryptocurrency and then immediately sell off their stake at that high price, thus leaving other investors in losses in the market.

Such a practice is known to be fraudulent and illegal in some areas and this is often because of its fraudulent nature of operation.

In this topic, we shall be examining the mechanics, implications and motivation of the pump and dump signal group.

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MECHANICS OF PUMP AND DUMP SIGNAL GROUP

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There are several mechanics of the pump and dump signal group and we shall be learning a lot a about it.

This topic will be splitted into 3 parts and we shall learn a lot

• COORDINATION:

The pump and dump signal group is well coordinated, in that it makes use of a popular social media app to target it's expected audience.

Here, the audience are meant to join a group created by them through the invitation link on other social media app.

In this group, they feed the audience on which token to target and how to go about it.

• SELECTION OF ASSETS:

Here the manipulators select what asset to manipulate.

After several discussion, they often go for tokens with little market capitalization and by doing so, it becomes very easy for such a commodity to be manipulated.

• PUMP PHASE:

Pump phase is the phase whereby organizers need the help of the public and they do so by spreading false positive news about the targetted token.

In this phase, the organizers proceed to make use of social media platform to hype the targeted project, hereby misleading so many into investing in the project.

And when the demand of the token becomes high, it leads to a rapid increase in the price of the given token.

• DUMP PHASE:

This is a phase whereby the coordinators notice that there are no much investors entering the project anymore and it has attained a particular increment in price.

It is then they proceed to sell off all their holdings, hereby increasing the supply in the market, and as such, it leads to a decrease in the price of that given asset.

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CONCLUSION

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Having discussed about the mechanics of pump and dump scheme, we shall learn about their motivation and then device ways we can avoid them and make sure we don't fall victim to them.