Pump and dump scam
Pump and dump (or pump & dump, often abbreviated as P&D) is a classic scam in financial markets, but especially common and brutal in crypto.
How it works in crypto (explained simply):
Pump (pumping): A group (usually in Telegram, Discord, or on social media) buys a cheap, little-known, or low-liquidity token/coin (small market cap, low liquidity). They then spread fake news, hype, "to the moon" posts, fake partnerships, insider info, or coordinate buys – artificially pumping the price (sometimes 100–1000% in minutes/hours).
Dump (dumping): Once the price hits a peak and lots of "FOMO" buyers jump in (people afraid to miss out), the organizers (insiders) quickly sell all their holdings at the top. The price crashes hard (often 70–95% in a short time), and late buyers are left with almost worthless tokens and big losses.
This is market manipulation and illegal in most countries (e.g., SEC/CFTC in the US, similar in the EU), but hard to prove in crypto due to anonymity and weak regulation.
Signs of a pump & dump:
Sudden hype in Telegram groups with countdowns ("pump at 20:00 UTC!")
Coin with low liquidity and huge % gains without real news
Fast rise + immediate crash
Tons of "shill" posts on Twitter/X, Reddit, etc.
In Crypto Truth Shield, that's exactly what you expose – protecting yourself and others from these scams. If you spot a suspicious pump, share it! 😈
Any specific example or coin you're suspicious about right now? 🚨
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Majda Ortan
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Pump and dump scam
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