Honestly, when I first started in crypto, I didn’t understand for a long time why some coins skyrocket and then fall faster than they rose. Then I realized — it’s a pump, a classic manipulation scheme that works everywhere there are speculators.

The essence is simple. A group coordinates actions through chats and social media, chooses a low-liquidity asset, and starts buying it massively. The price rises, newcomers see green candles, FOMO takes over, and they throw in their money. Trading volumes skyrocket, everyone thinks something serious is happening. But it’s an illusion — a pump is just artificially created demand, nothing more.

Then comes the second part — the dump. The scheme organizers start selling their positions at these inflated prices. The market becomes saturated with supply, and the price drops. Those who bought at the top lose money. Sometimes the decline is so sharp that people panic and sell at a loss, accelerating the dump even more.

What amazes me is how often this repeats. Every time, newcomers believe that this time will be different. They see posts on Telegram like “it’s about to skyrocket,” see screenshots of supposedly huge profits, and jump into the trade. Often, these posts are spread by the manipulators themselves, creating false information and fake news to hype up the asset they want to pump.

The consequences for the market are serious. First, it destroys trust — people lose money and start thinking that all of crypto is one big pyramid scheme. Second, volatility skyrockets, scaring institutional investors. Third, regulators begin tightening requirements because they see the market is infected with manipulation.

How to protect yourself? First — don’t blindly trust advice from the internet, especially if the advisors promise quick money. Second — look at trading volumes and the asset’s history. If a little-known coin suddenly skyrockets 500% in a day — that’s a red flag. Third — do fundamental analysis. Does the project have a real product? A team? Or is it just a name and hype?

Overall, pumps are a perpetual story in cryptocurrencies. As long as there are people willing to risk without analysis, there will be those who exploit it. So the main thing — stay informed and don’t give in to emotions. Verify information, analyze charts, don’t invest more than you can afford to lose. That’s when you’ll have a chance to stay in the green.