I have heard the term "pump and dump" used a lot in connection with cryptocurrencies. It sounds like some kind a of conspiracy to a manipulate the price of a coin. if I am right, how do the architects behind it achieve this?
Could someone explain it to me please .
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A pump and dump is when an individual with a lot of cash puts it into a small alt coin or company and that skyrockets the price. They then proceed to try and convince others to buy in and sell it at a peak. This then creates a herd mentality as the coin or stock loses in price creating a pumped up currency not really worth that value to drop. A few times it's insiders with more information about the news others it's just news dissemination.
Thank you, that was helpful.
Now follwing you @encrypt
no problem, new to this community as well. Just know some trading jargon :P.
Very helpful information!
I am glad you too benefited @playfulfoodie.
Just price manipulation to profit. Buy big, get others to buy big, sell bigger, everyone else lost if they didn't jump out on time. Keep in mind sometimes we are told something is being pumped and it is not, they do this so that we don't purchase because the person either wants to buy cheap, no competition, or is holding for a competitor tech.
Thanks for sharing that valuable information.