Detailed Explanation
How It Works
A group of traders, influencers, or insiders accumulates a low-volume coin. They then spread excitement through social posts, chat groups, or sudden buying activity. As outside traders rush in, price spikes sharply. Once enough buyers appear, the early participants sell into that demand, causing a rapid crash.
FAQs
How can I spot a pump and dump?
Watch for low liquidity, sudden hype, weak fundamentals, and sharp vertical price moves.
Are pump-and-dumps common in crypto?
They are more common in smaller, low-volume assets.
What is the safest approach?
Avoid buying purely because price is exploding.
