Beware Crypto Traders !! Pump & Dump Group on Telegram

in cryptocurrency •  5 months ago

Hey folks,

There are lots of group on Telegram which are doing pump & dump activity for a low volume coin. Following are the activities happens in these groups:

Time Announcement & Reminders Before Pump:
Screen Shot 2017-06-30 at 11.04.29 PM.png

Coin & Exchange Announcement:
Screen Shot 2017-06-30 at 11.04.41 PM.png

DM screenshot of Success of Pump & Dump:
Screen Shot 2017-07-01 at 1.50.37 AM.png

They have community of thousands of people, all the newbie traders get to know about these groups by means of friends or social media platforms, they read the post there like some coin is going to pump today upto 10x, Due to greed they forget to do research the history of coin & just buy at high price and not able to sell within that short span of time in pump & dump process.

Screen Shot 2017-06-30 at 11.16.10 PM.png

As you can see from the price chart, EMC2 got pumped for 1 minute from 2.5k to 18k which is about 9x, and in the very next minute red candle indicate fall of price back to initial value (approx).

I am not declaring these groups as scam but if you are that fast enough to know when to take an entry and get exit with huge profit then go for it otherwise stay away from these kind of telegram groups.

My observation :
After getting the name of coin, the very first thing people used to do is to place a BUY order watching the ASK price not the BID price.When people place order let say ASK price is 3k after 5 sec of coin annoucement, he will put order for 4k, it will take atleast 4 seconds(let say) to place the order, your order won't get your order processed because by the time price jump to 5k or 6k and so on, in the end newbie results in placing the order at 12k - 15k which could be the probable peak of the pump.Now for the exit, same is going to happen, resulting in sell at 10k or 8k => LOSS
Yup, I agree some people use to make profit from these pump & dump activity but by indirectly stealing some new group members money or money of the people buying it for higher price after seeing the surge in price.

How market is manipulated by these group of people or big players:
lets talk about EMC2-BTC pair on bittrex, see the ASK section, last SUM column, below is the 1st page listing 10 sell orders

Screen Shot 2017-07-01 at 1.21.50 AM.png

Now lets see the last page, To pump the price to 18k satoshi, you will need only 53 BTC (see SUM column of the sell orders)

Screen Shot 2017-07-01 at 1.22.07 AM.png

It means, Anyone with 53 BTC, can purchase all the EMC2 coins on bittrex for that moment of time, and sell them at the price whatever he wants to, unless the new sellers come into picture. makes sense Right.

So, For low volume coins, these group of people together manipulate the market for short span of time. Pump and Dump Scheme is very old concept. Watch the video below:

IMO, Stay away from low volume coins or code a bot over Bittrex APIs (which most of the group admins uses to make profit out of pump & dump game). Also, its not good way to earn money, you will eventually lose money when things goes wrong in minutes.

Anyways, possible strategy to make some profit:

  1. Immediately after getting the coin name, put the buy order with 10x of the current BID price. Place Sell order immediately with 2x-3x of the price you got.
  2. Instead of this manual process, automate this process using some script or code a Bot. [ If you find this hard to do, just upvote to show intensity of need for it, I'll do it & share with you guys soon ] - I don't want newbies to stop trading due to these fraudulent activities.

Its upto you, how you make strategies to win the game, I believe in high volume coins technical analysis and study hard for that, I came across this kind of group on telegram by one of my friend. Beware guys, Don't put your hard earned money to gamble around.

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@aqfaridi which group is it on telegram ?

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PumpNotifier

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Guys, if you need reliable advise on Crypto market and if you want to be a part of active pump and HOLD group then join us at https://t.me/reliable_pump_advise

We provide daily advises for minimum 10% gain daily. We take information from the experts and bots too. Come join, it is a free group.

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Thanks for sharing this. Followed

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@aqfaridi unit wrote a great post. Unit understands greed of human units and lack of empirical data from units who have lost much pine sol.

Hey faridi ,
I want to learn more about scripts and kpi bot

@faridi valuble info overall for newbies

@aqfaridi Hi, I just don't understand one thing. If I put 10x (BID) buy order, and after 2x sell, so I am expecting that price will pump up to 20x of initial BID? What if pump is just 3x ? I wont be able to sell anything.

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hi drarqon, when you place 10x of BID price, you will get the coins at ASK price at that time(which will be probably let say 1.5x), now, you have to see your buy price and put 2x of that price in sell order. It will work if price will go more than 3x. Right, hope you understood !!

is it possible to win in a pump-game with your fast hands?
well, here is a log of some pump by @captain_asdf - Pump Notifier/Trading Signals

T BTC_TOTAL PRICE%
0.0s here we go! 19:00:00, ask=100
.......
4.4s BUY 12.3btc 93.1% - buy-trade at 19:00:04.4, price is 193!! and 'somebody' has already bought altcoins for 12 btc
.......
4.5s BUY 13.7btc 95.1%
somewhere here you get your telegram message with 'unknown' coin name...whoaaa...nice...let's try to buy as fast as possible!
........
9.4s BUY 19.7btc 129.1%
here you buy, peak price 129!!!
what's next?
go down...sorry, you're not a winner(

'we are fair pump group' they say

Damn, I wish I had found this article sooner, I would totally resteem. Awesome article! Very on point. I'm also not a big fan of PnD, but could be useful here and there for small gains I guess. I was offered some bot for this for about 100$ is this a good or bad price?

Anywasy, one more thing - from what I've discovered often "technical analysis" are also used as a part of a false advertising, so Im not sure how much of a reliable indicator is that. Although I'd like to learn more about it either way. If for nothing than for my own protection :)

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Hello,i just found an awesome channel with free pump and signals! Already earned a lot from them so i want you to profit from it too!
Check their video and join the chat its FREE!
They are selling a better bot and holding giveaways often!

Good analysis. I recently posted something similar. We gotta warn people about these groups..

Quality post & must read for new crypto traders. Thanks for Posting!
Gave you a follow and upvote!

Useful information. Check out guys my telegram channel on Altcoins and Signals. Hope you will like it

good tutorial. this sounds like pretty similar to penny stocks.

Hello Steemit, we have an open discussion group on telegram, please check us we are talking about ico's (what to invest and what to avoid) you can even advertise since it is no censorship around there, or maybe get more opinions before you decide what to invest into, check us up http://t.me/ico_now

Dont go for Pump & Dump - they are not good
Join the Free Group for Crypto Advice - https://t.me/btctradingclub

Great article...wish i've read this 2 months ago when I started. This could've saved me some bucks. I'll share it on FB too.

Join our Team and check what will happen :)

https://t.me/Poloniex_Pumpers

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Hey bro already lots of group

Guys, if you need reliable advise on Crypto market and if you want to be a part of active pump and HOLD group then join us at https://t.me/reliable_pump_advise

We provide daily advises for minimum 10% gain daily. We take information from the experts and bots too. Come join, it is a free group. https://t.me/reliable_pump_advise