Pump And Dump Signal Group Explained #003

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Hello great minds,

It is a great opportunity to come before you all today to discuss on an issue of great importance in the cryptospace.

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

It is another beautiful day and I want to conclude the interesting discussion we had on pump and dump signal group.

We have learnt on the operation of a pump and dump signal group, we also learnt on the reasons many are diving into it.

Today we shall examine the negative effects of pump and dump signals, please stay tuned.

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IMPLICATIONS AND CONSEQUENCES OF PUMP AND DUMP SIGNAL GROUP

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There are several implications of pump and dump signal groups which makes it be considered as a fraudulent practice, and some of them are explained below

• INVESTORS LOOSE:

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One consequence of a pump and dump scheme is that investors loose a lot of money.

There are some investors that borrows funds just to invest in this project and they end up being scammed, this leaves them jeopardized and In low mental health.

And this sometimes leave investors in financial instability for a long period of time and in turn, they develop apathy for investing in cryptocurrency project.

• MARKET CONFIDENCE:

Another dis-advantage of pump ad dump scheme is that it removes the confidence investors have in the market.

They become disappointed in the market over their loss investment and this pursues them away from the market.

Whenever a particular sector of the cryptomarket Is perceived to be manipulated or filled with fraudulent activities, it can have effect on the ecosystem as a whole.

And this inturn hinders the growth and development of the cryptospace.

• LEGAL IMPLICATIONS:

Another dis-advantage of pump and dump schemes is that it is generally considered to be a fraudulent practice in the cryptospace.

And as such, the government and other regulatory bodies are in search of individuals that are engaged in this type of schemes.

This inturn restricts the freedom of such individuals since they are being wanted by the secular authorities.

And eventually, when they are caught, the punishment will be severe and in most cases more severe when compared to the crime committed.

• REPUTATION DAMAGE:

Participating in pump and dump schemes often damages the reputation of individuals involved.

Aside being wanted by the authorities, you will be known as a criminal by many in your vicinity and this will reduce the trust and respect everyone has for you.

And when it comes to professional level, you will not be trusted to handle any project even if you are good at the project

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CONCLUSION

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Wr have examined the implications that comes with getting involved in pump and dump signals, and as such we should resist such.

It is best that before investing in a project, we make a thorough research about such project so we don't fall victims to scammers