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I have been following the crypto market for a long time and noticed an interesting pattern — almost every year we see several impressive pumps that are then followed by a sharp decline. This is not just market fluctuation; it’s a whole system of manipulation operating according to the same scenario.
For example, let’s look at what happened in 2020-2021. I remember how in September 2020, the SUSHI token literally skyrocketed from $0.70 to $10 due to hype around the decentralized exchange. Everyone thought it was a new revolution in DeFi. But then the project’s creator unexpectedly withdrew their funds from the liquidity pool, and panic ensued. The price dropped to $2.50, and many retail investors lost money. It was a classic pump — artificial growth followed by a dump. Now SUSHI trades around $0.22, and no one remembers those times anymore.
Dogecoin in 2021 showed how one famous person can trigger an entire financial fireworks display. Every tweet from them caused price jumps. From January to May, the price rose from $0.008 to $0.73 — a 9000% increase! Traders on major exchanges actively participated in this pump, profiting from volatility. But after the correction, the price fell, and many were left with losses. Today, DOGE is worth $0.11, and although it still survives thanks to the community, those golden days are gone.
The LUNA token in May 2021 soared by 2500%, promising a revolution in stablecoins. It seemed like a serious project with solid fundamentals. But pumps are rarely sustainable. A month later, the price dropped more than 50%, and those who bought at the peak found themselves deep in the red. Now LUNA trades around $0.07, and the story of this project has become a warning for many.
Shiba Inu in October 2021 grew by 200% in a few days after being listed on a major exchange. It was a pure meme token, but marketing and celebrity support did their job. The pump didn’t last long, and after early profit-taking by major holders, the price started to fall.
What have I learned from all this? Pumps are usually organized by coordinated groups that create demand through social media and influencers. They work until the flow of new money dries up. After that, a dump begins, and retail investors lose their money.
History shows a clear pattern — pumps rarely turn into long-term trends. Projects with strong fundamentals can partially recover, but meme tokens remain hostage to short-term trends and social media. If you see a sharp rise in an asset, it’s worth asking yourself — is this organic growth or another pump about to collapse?