So how come people succeed with pumping and dumping?
Pumping is buying a crapload of coins at low price and then dumping at higher price. But to be able to dump them, you have to find buyers who will buy it at that price, which might not be as easy, right?
There are a ton of speculators and speculator wannabes on the exchanges. Many of them have no idea about the coins, they only look for coins on the rise.
The idea is simple: if the coin is rising, let's buy some. When the coin has rose enough, sell and we got some profit.
In theory the Pump and dump groups buy enough coins to give the impression the coin is on the rise, getting others to buy too. When the up trend is created, they have to maintain that buying strategically when small amounts of money give best rise in the price. Fake buy and sell walls can be part of the strategy too. Messages on speculation threads may also "create the mood". All is nice and dandy, at some point the PnD group sells (at the high price, remember?), the speculators cut the loses quick gaining little or losing some and the speculator wannabes start crying about what happened with the coin, the exchange and.. their money.
In practice this happens with a couple of whales (singular entities with big amounts of money) doing this, but not too often.
In practice PnD groups may trick the new members into fake pumps and dump some useless coins onto them.
Imho while pumps and dumps are real, they are not too often, while PnD groups are blatant scams.
I bought coins before but it was instant.
It all depends on the coin, the market and the price...
