Pumping and Dumping — hunting for suckers in the crypto world

Myan Crypto

November 10, 2024

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Scam scheme

Oh, these cryptocurrencies! An unregulated wild west, where every second person dreams of getting rich overnight. Such an atmosphere has created the perfect breeding ground for age-old scams, the main one being "Pump and Dump." I almost fell for this trick myself last year when some no-name token skyrocketed by 300% in a day. I thought I had caught a golden fish, but it turned out to be just bait for other greedy newcomers like me.

In simple terms, pump and dump is when a group of manipulators buys a cheap coin, inflates hysteria around it, and then dumps their "treasures" on naive investors at an inflated price. After their big "dump," the price plummets, leaving the suckers (, among whom could have been me ), with worthless tokens.

How does it actually work?

Imagine the situation: you are sitting in a Telegram chat, and suddenly people start writing about some super-promising coin. "It will skyrocket by 1000%!" "Don't miss your chance!" "Even my grandpa has already invested!" And then you see that the chart is indeed creeping up.

What's happening behind the scenes? A group of organizers has already bought this junk for pennies. Now they are bombarding all channels with fake news, paid reviews, and bots, creating the illusion that this is the "new bitcoin." The price is rising — not due to real value, but because of artificially created hype.

And at the moment when you give in to the herd instinct and buy at the peak — the organizers massively dump their supplies. The price collapses, and you are left with tokens that nobody wants.

How to avoid becoming a victim?

My grandmother used to say: "Free cheese is only in a mousetrap." This is 100% true for the crypto market. If you see a sharp price surge without real reasons — run away. If the trading volume suddenly skyrockets — it's not "mass interest," but the work of manipulators.

Be especially wary of intrusive messages like "BUY NOW OR YOU'LL REGRET IT!" in Telegram channels and forums. Genuine projects do not require such cheap tricks. And yes, no anonymous "guru" from the internet wants to make you rich just like that.

What should we really look at?

Don't be naive like I once was. Before buying any coin, ask yourself questions:

• Who is behind it? A real team with experience or anonymous individuals?
• What is its practical value? Does it solve real problems?
• Why is it suddenly rising? Are there objective reasons?

I prefer to trade only on large platforms where there is at least some control. And I never invest money under the influence of emotions or FOMO (fear of missing out on profit).

Remember — the same people who shout "TO THE MOON!" in the chats will be the first to dump their coins at the first signs of a decline. In the crypto world, everyone is for themselves, and naivety comes at a high price.

#tradingdiary #makemoneyonline #memecoin🚀🚀🚀

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