If you're a beginner in the crypto market, sooner or later you'll come across the question of what a pump and dump are. And it's important to understand this because this scheme costs people real money every day.

Pump-and-dump works simply but ruthlessly. A group of organizers selects a low-liquidity token, usually on a DEX or a small exchange. Then, through closed groups on Telegram or Discord, they coordinate a mass buy-in. Within minutes, the price skyrockets by 5–50 times — the same "rocket candles" appear and wild FOMO, which lures in new participants.

Here's where the trap lies. While ordinary investors buy at the peak, thinking it's just the beginning, organizers and insiders sell everything at once. The price drops by 80–99 percent in seconds. The money disappears.

In recent years, the biggest pumps have occurred with meme coins and tokens on Solana, Base, and TON. Some groups have between 100,000 and 300,000 members and operate through bot signals. The larger the group, the more organized the scheme.

Technically, pump-and-dump are prohibited by the legislation of most countries, but on the crypto market, it's very difficult to track them. Regulators simply can't keep up with the pace. Therefore, the only real protection is your common sense.

Don't chase +1000 percent in 10 minutes. Remember a simple rule: if you've already seen a pump signal — you're already last in line. The most interesting part has already happened before the information reached you. The same people always play on this, and new participants lose.