Title: Can someone explain how pump and dump allegedly works? Post by: andypagonthemove on January 25, 2019, 03:38:12 PM If you pump the price by buying, driving the price up, and then unload all the coins you wanted to get rid of, don't you just drive the market priced down past where it was and end up with more coins than you initially had to sell? I just don't get the logic.
Title: Re: Can someone explain how pump and dump allegedly works? Post by: Ciscopro2000 on January 25, 2019, 05:00:32 PM Ideally you already have the coins. You then basically start pumping them by telling your friends, family, business associates, acquaintances, the internet how great the coins are. All the while you are dumping the coins on the market. You are hoping the people who are buying on your advice will raise the prices of the coins, thus netting you a nice profit. Everybody else will eventually be left holding the bag once they find out your advice is nothing but hot air and prices start dropping.
Title: Re: Can someone explain how pump and dump allegedly works? Post by: Autumn_Rain on January 25, 2019, 08:53:42 PM Large groups of people or whales can influence the market easily.
In simple words, when they want to sell their coins, they pump up the price by manipulating the market via the exchanges by placing higher prices for the coin. When they are quite satisfied with the result, they sell it to people who got caught with this trick thinking the market is recovering and the price will boom even higher. Dumping is a similar but just an opposite process which happens when they need to buy the dip. Title: Re: Can someone explain how pump and dump allegedly works? Post by: odolvlobo on January 26, 2019, 06:37:09 AM If you pump the price by buying, driving the price up, and then unload all the coins you wanted to get rid of, don't you just drive the market priced down past where it was and end up with more coins than you initially had to sell? I just don't get the logic. Yes. You are correct. Many people (such as Autumn_Rain) don't understand how it works. Here is how pump and dump really works:
Contrary to popular misconception, the scammer (or manipulator) doesn't drive the price up by buying because that is too risky and it generally doesn't work. Notes:
Title: Re: Can someone explain how pump and dump allegedly works? Post by: lomberer on January 30, 2019, 01:07:58 PM I think this article explains pretty clearly about how it works:
https://steemit.com/bitcoin/@joseph/wolong-the-game-of-deception-unedited-version It is a manifesto from Wolong, famous for his work on the pump and dump scene for dogecoin. It involves a fair amount of capital and social engineering in order to convince people to follow along. I think you'll particularly be interested in the 'Exiting' section of the document as it explains some of the methods used. Title: Re: Can someone explain how pump and dump allegedly works? Post by: Mr.Ease on January 30, 2019, 01:22:38 PM You buy a whole ton of tokens. Basically, You over-buy up the supply, then put another couple massive buy orders higher than where you bought said tokens.
Hopefully, bots or other users will increase there buy orders above yours = Price PUMP. Then you slowly sell at profit until you deplete your supply Remove buy walls = Price DUMP It's risky, because you can find yourself stuck with a massive supply of shit tokens that no-body, not even bots, wants to buy ;) It's probably the best, and easiest way to burn yourself. Search for better options Title: Re: Can someone explain how pump and dump allegedly works? Post by: GlobalFuneralCare on January 30, 2019, 08:06:34 PM Maybe this video might be helpful: https://www.youtube.com/watch?v=MD71I2XgvcI. It is a brief introduction of how it works. Although I would say, please be very careful, because it is a very high risk way to gain your portfolio.
Title: Re: Can someone explain how pump and dump allegedly works? Post by: tabernacle on January 30, 2019, 08:38:17 PM This is usually done in scammy telegram groups that offer investment advice. One thing that people didn't cover here is that sometimes the groups "leaders" announce that this specific coin is going to raise because of this news, so they pump the coins slowly for few cents to make it look legit. People on that group will eat the bait and then the massive pump starts, where the "leaders" start dumping and netting profit while the average Joe is left hoping to get his initial investment back.
Title: Re: Can someone explain how pump and dump allegedly works? Post by: KingScorpio on January 31, 2019, 07:44:32 AM market is full of idiots they only look at current price not the volumes behind. this way, the asset issuers, can always by back small volumes and raise the official price, till the idiots are dumping it again.
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