Pump and Dump Scheme Explained in 60 Seconds
The pump and dump scheme relies on social media and mass messaging services to reach a broad number of potential victims. The scammer will create a group on Twitter, YouTube, or other social media platforms. Then they will send out messages to their contacts telling them about the group and encouraging them to join it. Once they have attracted enough members, the fraudsters start sending out messages that promote a specific cryptocurrency by praising its qualities or promising quick profits.
They may also post fake screenshots from crypto exchanges to make their claims seem more legitimate.
Once the price has been raised sufficiently, they will sell off their coins at the higher price point and make a profit from their scam.
Are you ready for the crypto economy? | THE CRYPTO PIE
Each time you turn on the news, read the papers, or scroll through your Twitter feed, you'll most likely see stories…
- 3Commas Review | Pionex Review | Coinrule review
- Ledger vs Ngrave | Ledger nano s vs x | Binance Review
- Bybit Exchange Review | Bityard Review | Jet-Bot Review
- 3Commas vs Cryptohopper | Earn crypto interest
- The Best Bitcoin Hardware wallet | BitBox02 Review
- BlockFi vs Celsius | Hodlnaut Review | KuCoin Review