Pump and dump schemes have become an increasingly frequent issue in the cryptocurrency market. Unfortunately, these schemes are becoming more and more common, and it can be difficult to spot them.
A pump and dump scheme is a form of market manipulation where an entity, usually a group of people, buy a large amount of a certain token and then artificially inflate the price by spreading false information or rumors. Then, those same people sell the token at a higher price, leaving other investors with losses.
So what can be done to spot a pump and dump scheme? How can one protect themselves from being a victim of such a scheme? What safeguards can be put in place to minimize the chances of being scammed?
I'm hoping to get some advice and insight from experienced investors in the cryptocurrency market. Any tips or advice on how to spot a pump and dump scheme would be greatly appreciated.
A pump and dump scheme is a form of market manipulation where an entity, usually a group of people, buy a large amount of a certain token and then artificially inflate the price by spreading false information or rumors. Then, those same people sell the token at a higher price, leaving other investors with losses.
So what can be done to spot a pump and dump scheme? How can one protect themselves from being a victim of such a scheme? What safeguards can be put in place to minimize the chances of being scammed?
I'm hoping to get some advice and insight from experienced investors in the cryptocurrency market. Any tips or advice on how to spot a pump and dump scheme would be greatly appreciated.