Pump and Dump Scheme

Pump and Dump Scheme is a fraudulent strategy often seen in crypto and stock markets. It involves inflating the price of an asset through misleading or exaggerated statements. Once the price rises, the perpetrators sell off their holdings at the inflated price. This leaves other investors with devalued assets once the price inevitably crashes. These schemes often target low-volume assets to manipulate prices more easily. While illegal and unethical, they can be difficult to detect in decentralized markets. Being aware and conducting thorough research can help investors avoid falling victim to such schemes.