Pump and dump
The process of buying a large amount of tokens at once, usually as a co-ordinated group, in order to artificially inflate or ‘pump’ the price causing a market reaction as outsiders attempt to ride the upward trend, then selling or ‘dumping’ at the highest point.
In a sentence
Promoters coordinated a pump and dump by buying the token, advertising it aggressively, and selling into the rally.
- Promoters coordinated a pump and dump by buying the token, advertising it aggressively, and selling into the rally.
- Late buyers suffered losses when insiders dumped their holdings after the pump.
- Thin liquidity made the asset easier to manipulate in a pump-and-dump scheme.
- The exchange investigated unusual trading associated with the suspected pump and dump.
- Promises of a guaranteed coordinated price surge were a warning sign of market manipulation.
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