Pump and Dump definition
Definition
Manipulative scheme to inflate price then sell
Common in low-cap tokens on social platforms, pumps use hype groups; SEC has cracked down, with cases like 2023s Kim Kardashian fine highlighting risks. Pump Tactics: Telegram/Discord Groups: Coordinated buys. Paid Influencers: Shill campaigns. Bot Trading: Fake volume. Red Flags: Locked liquidity <6 months, anonymous team, unrealistic promises.
Common in low-cap tokens on social platforms, pumps use hype groups; SEC has cracked down, with cases like 2023s Kim Kardashian fine highlighting risks. Pump Tactics: Telegram/Discord Groups: Coordinated buys. Paid Influencers: Shill campaigns. Bot Trading: Fake volume. Red Flags: Locked liquidity <6 months, anonymous team, unrealistic promises.
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