What is Pump and Dump in Crypto

Part 2
1. How Pump and Dump 🎭 Schemes Work
* Buy the token: scammers quietly accumulate a coin with low market capitalization. 🪙
* Create a hype: they start spreading wild statements about the future of the coin in social networks and private groups. 📣
* Increase the price: FOMO appears, new buyers appear, and the price rises sharply. 🚀
* Throw the coin: scammers sell everything, crashing the market. 💥
* Innocent investors lose: people who bought late are stuck with losses. 💸

2. Red flags to watch out for 🚩
* Low market capitalization: scammers love small coins that are easy to manipulate. 🧐
* Sudden price jump: if the price of a coin suddenly increases for no reason, be suspicious. 📈
* Excessive marketing: promises of 'guaranteed income' or 'the next bitcoin' are the main problem. ❌
* Influencer Shilling: follow paid promotions from random influential individuals. 🤳
* Lack of real use cases: scam often involves coins without a clear purpose or development. 🤔

3. How to protect yourself 🔒
* Don't give in to FOMO: stick to your research and avoid impulsive purchases. 💡
* Check the trading volume: look for sudden, unexplained spikes in activity. 📊
* Check: make sure that the advertisement is supported by real news from reliable sources. 📰
* Diversify your portfolio: don't put everything on one speculative coin.
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