Pump and Dump- How Does It Work?

in cryptocurrency •  2 years ago

Today I'm gonna talk about the Pump and Dump method in the cryptocurrency market.

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How does Pump and Dump work?
The most common way to do Pump and Dump is by arranging a group of "whales" that will do this:

1)Choose a specific altcoin.

2)Once chosen, they buy large amounts of the coin, which causes a rise in the price.

3)Begin being chatty about the coin in various places, forums and the trollbox.

4)By now people start paying attention to the coin but they are still suspicious, some already buy it.

5)Next stage would be pumping the price once more so people would see that this is a solid trend up and start panic buying.

6)A wave has started, the prices are going up and fast, people are buying and buying hoping to make a fortune.

7)The group now starts selling, but splitting the amount to not raise suspicions.

8)People riding the wave buying the amounts the group has sold.

9)Price is starting to drop.

10)People try to sell fast to keep as much as they can of the money the spent.

11)Panic sell has started.

12)Price got low again, buy more and repeat the process/choose other coin not to raise suspicions.

That's basically it.
If you got anything to add up or questions, be my guests.

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Thanks for the info!

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You're welcome!

So you are a millionaire now.

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I sure am not, I am not either a whale nor a millionaire.
I'm just riding the waves of the whales making small but easy profits.

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Not bad, now the market is red, so, what you plan to pump?

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As I said, I'm not pumping anything.
I just know how to spot trends at time I guess...

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Ok, think of it to be rich.

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Theres a group from exposurepump that tries to pump and dump.

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www.twitter.com/exposurepumps

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I added you. and let us follow together.

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Thanks, just be careful with the group. I just observe I find it interesting. I'll be glad when the coin I'm holding gets pumped but I'm not investing in a coin to to catch the pump. Too risky for me. lol

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There are many of these kind of groups, some are successful, some are not.

yep, just like how a penny stock operates.

so don't invest in dogecoin then? surprised it's as high as it is (.0023) haha, and hasn't dumped. yet.

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Wouldn't be smart ^^

hm, seems like true

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People hate how governments control everything. This is far worst. With the bitcoin crisis and all those ICO I really am hoping for a change in our crypto space. Time will tell.

You forgot the initial accumulate a large portion of coins available on exchange at the initial low price slowly over time.

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I wrote that as the last one if I'm not mistaken.

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Yes but it's the very initial phase. Can go on for years, buy a bunch, then supress the price and get a lot more cheap. Then begin the PnD

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Yeah that's true.

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Great explanation of pump and dump theory @nativzel. peace

Thanks for sharing. It's a good reminder to hold on to the coins you believe in and not get caught up in the up and down frenzy happening so frequently.

friends this telegram pump group is very successful. I would recommend https://t.me/rocketpumptrader