Pumping and Dumping: How Scammers Manipulate Crypto and Why You Always Lose

The cryptocurrency market is the wild west of finance. And in this chaos, one of the most common schemes has already drenched thousands of wallets in blood: pump and dump.

How This Lottery Really Works

It's not difficult. A group of scammers quietly buys an unknown coin for pennies. Then they launch the propaganda machine: tweets, YouTube videos, Telegram chats are filled with promises. “It's about to take off!”, “The next Dogecoin!”, “Whales are already buying!”.

Newbies see a price spike and think: miss the moment — you're done for. They start buying. Demand rises, the price shoots up. Trading volume goes through the roof. At this moment, scammers simultaneously sell off everything they've bought. Boom — the price drops three times in hours. And you are left with a bag of air in your portfolio.

What to Watch to Avoid Catching a Pump

Red flag #1: Price skyrocketed out of nowhere The coin lay quietly for a month, then rose by 300% in a day without any news? This smells like manipulation.

Red Flag No. 2: Trading volume shoots up along with the price If the volume sharply spikes in sync with the rise — this is a sign of pumping.

Red Flag No. 3: Matching Investment Advice Do you see recommendations for this coin simultaneously in different chats, on forums, in TikToks? This is not a coincidence — it is a coordinated campaign.

Red Flag No. 4: Urgency and FOMO “Quick, now or never!” — this is a sure sign of a scam. Real projects are waiting for you tomorrow, the day after tomorrow, next month.

How to Protect Yourself

1. Investigate the coin like a detective: Who are the founders? Is there a real product or is it just a token? What project is behind it? Is there at least a basic website and roadmap?

2. Check the fundamental indicators: What is this crypto needed for? Does it solve a real problem or is it just a speculative asset?

3. Diversify your portfolio: Don't put all your capital into one unknown coin. Invest a little in different assets.

4. Trade on trusted exchanges: Gate, Kraken, Coinbase monitor manipulations better than smaller platforms.

5. Stay updated with the news: The more information you gather, the faster you will see the patterns of scams.

6. Be skeptical of the hype: If your neighbor's friend, who tried Bitcoin two years ago, suddenly talks about a mega opportunity — this is not advice, it's a trap.

Result

Pump and dump are not a bug of the crypto system, it's a feature. As long as the market is unregulated, such schemes will thrive. But if you learn to recognize the signs and don't fall for promises of quick riches, you can come out ahead. The others pay for their education with their money.