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Pump and Dump

Pump and dump is a type of manipulation that occurs in crypto market, where a group of individuals, or a “pump group,” artificially inflates the price of a cryptocurrency through coordinated buying and then selling it at a higher price.

The pump group, which is often led by a “pump leader,” will typically use social media and messaging platforms to coordinate and promote the buying of a specific coin, creating a sense of urgency to buy it quickly. Once the coin’s price has been artificially inflated, the pump group will then sell their own holdings at a profit, causing the price to drop and leaving late investors with significant losses.