Be aware of Scam Crypto Pumps - I lost money.
Yesterday I took part in Bittrex Crypto Pump.
What is a Pump?
People organize to buy one the same crypto on one market. In my case it was market Bittrex and crypto AEON. They bump its price and then sell with advantage because other people who don't participate in that, are "bound" to buy it also for higher when seeing how its price increases.Coin is revealed at specific hour so people cannot buy it earlier (
Pumps are organized usually on Discord. People create groups for pumps on special crypto market and do pump once in a few weeks.
This is theory.
in reality, it does not work like that.
Here is why:
people who organize pump, can buy coin EARLIER, for smaller price, therefore it is them who are selling coin for casual participant for higher than usual price
They don't buy that coin in big buy like a few minutes/hours/days earlier because that would cause increase a volume of coin - they buy in small pieces during a long time to not make that coin popular.
people who invite a lot of people for such group, obtain coin info 15 second earlier, therefore they can buy for 2x smaller price than You will see when You open a market 15 seconds later
even if not people with invitations, people with bots still will be faster Than You
teoretically price of crypto stays on very high level for a few minutes. Yes. But after 10 seconds there is nobody who is going to buy that. People who took part in Pump already buyed, and there are no other people.
Because organizers of Pump choose trash-coin which has like 1000$ of transactions during 24 hours. Because of that, during pump there is nobody outside pump who is buying or selling that. People who buy during pump, buy from people also from the pump who bought earlier (organizers and mass-inviters), and are selling to people who are also in pump but have slower internet of reaction. Therefore, it is closed circulation. Therefore, there is no way all people in pump win. Guessed who is winning? People who bought for cheaper - organizers and mass -inviters. Even some people with bots lose. And because organizers and inviters are small %, most of people lose their money.
they also choose coin which has market only with BTC, because they don't want people to buy it for e. g. USDT and sell in BTC
And after people once cheated, they will massively invite new people. They invite massively on every discord crypto related group. Really. During last months, I was invited every day to one of such groups.
Fortunately I used only small part of money yesterday. Now I have a lesson.
I write that text to protect other people.
I bought coin for not the highest price, but after 5 seconds there was nobody for whom I could sell it. All pumpers already bought and there were 0 people outside pump because coin was 6 years old with 0 popularity.
The group I was is Discord "Bittrex Incredible Pumps". They have also "Binance Incredible Pumps" organized by the same people.
Please tip me to help me earn something back :)
Read also on publish0x: https://www.publish0x.com/cryptotechnologyscience/be-aware-of-scam-crypto-pumps-i-lost-money-xjmydlm
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Thanks for sharing @maciejficek
I personally never participated in any pump and dump, since I always consider it to be very risky move. Risky for regular people, not for those who are behind it.
To me this sounds like a propaganda. If price is going up, then more likely those who profited will take some of their profits. I cannot see people "jumping" on board of pump without solid publicity. So those who follow similar discord groups will mostly lose. Because noone else (Except of them) will even know and care about some little pump.
Again, thanks for sharing your experience with us.