If you are not new to the crypto business you must have heard the word PnD a million times and probably must have known what it entails.
My Ugly experience
Some time last year, while still trying to recover from the loss i incurred from Ponzi schemes, I dived into the crypto world without actually trying to understand how things works. I got introduced to a coin that rose in value from almost 3$ to 48$ per piece within the space of one month. I gullibly dived into it, got a few piece and before i could sell it off completely its value was almost 9$ and that was my huge loss
According to mreporters
“Pump and dump” also known as PND refers to a trading scam where people organize to coordinate then laddered purchase of an asset, then wait for others to come in at some delay and further increase the price before coordinating the unloading of their position once a specific price target is reached. This is illegal in the stock markets, but since cryptomarkets are unregulated such schemes are rampant"
More PnD groups are currently sprouting, especially with the advent of Discord channels and other chat groups, . The scam system is now so well organised that if you are not smart enough or not part of the PnD team you are most likely to be at the loosing end.
It is called a pump and dump system because the scam act well planned, one pumps into a system, say by introducing a new or an already existing coin and promotes it online(some even go as far as using multiple accounts for this) and when this is achieved, the demand for the coin increases leading to a traffic and a spontaneous rise in value thus increasing much investors and when the coins hit the targeted price, the bulk of it is sold off leading to the dump process. panic sells sets in because the value no longer increases causing the demand to drop and people selling at lower value returning the price of the coins to average.
A Key Move to be conscious of
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A very popular strategy being used today is similar to the Ponzi scheme promotion strategy. In this case, the system is structured into tiers. The top tiers get a signal earlier than the bottom tiers and usually by the time the bottom tiers get the signal its too late, so unless you pay money to part of the top tier or have a connection with the admins its not even profitable.
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They are bad for the market as a whole and they prey on those who are looking for a get rich quick scheme. So as an investor, try to study the behaviour of a coin before purchasing it. And we hope this activities will gradually die down as more people become aware of these acts.
Oh, forgot to thank you for your upvote to my latest post!!! Thanks!!!
Nice post,i condemned any scam activities,i hope ppl stop to do those things,iam sorry for your loses and unfortunately many newbies in cryptosphere fall for scams too,your post can be a good warning,and maybe some day no one will fall for these scams anymore.
Thanks for share.
Thanks... I so much appreciate this comment.
Thi is a very good post! Just upvoted and follow you. It's a very good initiative to expose these scams as lot of ppl are victims everyday and there are rarely published articles about the nature and the organization of these scams. Expecting more posts like this wish you a nice week!!!
Thanks alot for your contribution...