I know what pumps and dumps are but can someone explain to me how they work, in detail please?
This is my understanding:
You put a bunch of money in and create a buy wall in which the sellers dont have enough to fill.
(Does that make the price go up?)
After the price goes up, then you sell.
What if people are not willing to buy all of your coins?
Why would people buy coins when the price is high?
What is a "noob trap", i read that on one of fontas tweets.
From my understanding, this is how a Fontas pump REALLY works:
Fontas slowly buys a bunch of cryptocurrency really cheap under different user names.
Then he announces on Twitter that he's going to "pump" the currency. All of his followers on Twitter and BTC-E buy up the coins, causing the value to rise.
On the day of the "pump", Fontas creates a massive buy order slightly over market value called a "wall", and announces that the "pump" is on. People start buying it like crazy, driving up the price quickly. Fontas really isn't doing anything... his minions are doing it for him.
Fontas unloads his holdings at a big profit, and leaves the "noobs" with overpriced crypto currency that is rapidly falling in value. If they panic sell it fast enough, Fontas might buy the currency again for a second wave of pump and dump.
And the noobs fall for it every time. Suckers.
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You better pay me off with a few hundred Litecoin before I sue!
