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Author Topic: What does 'Pump and Dump' means in crypto trading ?  (Read 4655 times)
odolvlobo
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July 11, 2017, 07:06:36 PM
 #21

The pump is the process is where a coin get its price inflated due to whales investing in it..., the dump is the reverse process when after a pump the hales withdraw their money...
I think a pump typically means that an individual or group is driving the price up by buying a bunch of coins...
Then ... the individual or group ... begins to sell at these high prices which is called a dump
DUMP means the drop of the price and PUMP means it's raise.
Pump means price increasing  & Dump means price drcreasing. You have to buy before pumping ans sell when the pumps happening.

No.


So many wrong answers and such an easy way to get better info. https://en.wikipedia.org/wiki/Pump_and_dump

Quote
"Pump and dump" (P&D) is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" sell their overvalued shares, the price falls and investors lose their money. Stocks that are the subject of pump and dump schemes are sometimes called "chop stocks".[1]

While fraudsters in the past relied on cold calls, the Internet now offers a cheaper and easier way of reaching large numbers of potential investors.[1]

Yes.

The "pump" is not the increase in price. The pump is the promoting that causes victims to buy, which causes the price to rise. The scammer buys before the pump so that they can get the maximum profit when they sell.

The "dump" is not the fall in price. The scammer dumps the shares at inflated prices to the victims that buy as a result of the pump. The fall in prices happens after the dump when there are no more buyers to support the inflated price.

A "pump group" is a scam. Here is how it works:

1. The scammer creates a "pump group" convincing each member that they are on the inside and that they will profit.
2. The scammer selects a coin and buys it doing their best to pay the lowest price possible.
3. The pump. The scammer announces the time and date when members are supposed to buy.
4. Smarter members buy early, the rest buy at or after the announced time and date.
5. The price starts rising and members and others start buying.
6. The dump. The scammer starts selling as the price rises.
7. The buyers dry up and the price falls.
8. The scammer and some members make money, but everyone else loses.

The pump group scam works because of the belief that the pump is the rise in prices and the dump is the fall in prices.

Finally, this is not all theoretical. I know a guy that does this now, and some old-timers might remember Fontas, who was (and probably still is) a master of pump-and-dump.

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July 11, 2017, 07:52:59 PM
 #22

I think "Dump" means price down & "Pump" means price high.

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July 11, 2017, 08:13:33 PM
 #23

I'm not sure but I guess they use the term pump (buy) as if they are filling in life in something dead because they often pump a less known coin and dump (sell) these coins later when the prices are high like something useless. Pump and dump is not only unethical but also not good for cryptocurrencies and yes there are so many pump and dump groups there on telegram which one should avoid and shouldn't be part of because you're going to lose all your money with them most of the times.
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July 11, 2017, 09:58:01 PM
 #24

hi all.,

i am not a day trader , so i dont know much about these terms.,

there was trollbox on polo where people used to say pump and dump specific coins. but trollbox is gone now.,

from basic understanding dump means DROP,
does the PUMP means buy ?







Just like what it happens in a real life situation, when you are doing a pump you are putting a pressure that results into the rise of a certain object. That is also what really happen in the market industry. Price values of various types of cryptocurrency undergoes a certain process of pumping and dumping which normally happens with the sudden exchanges of price value in the market. Also in cryptotrading. The rise of the btc value for buying a certain altcoin is an indication that it is now time to sell some assets you are holding for trading.

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giveen
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July 11, 2017, 09:59:16 PM
 #25

In general pumo means buying more coins which increases demand and price tends to increase and dump means selling coins which reduces the price. Now selling or buying 1 or 2 won't make any difference but when everyone buys and sells at the same time it creates a big difference.
Another type of pump is quick profit , there are many groups on telegram and what they do is post a coin at a specific time and what members do is rush to buy the coins and they end up raising the price to x10 times after few min itself people start selling their coins whicb decreases the price aka dump.

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July 11, 2017, 10:31:04 PM
 #26

hi all.,

i am not a day trader , so i dont know much about these terms.,

there was trollbox on polo where people used to say pump and dump specific coins. but trollbox is gone now.,

from basic understanding dump means DROP,
does the PUMP means buy ?







Yes in crypto and many exchanger if you go on troll box you can read the dump and pump word. Dump as you said another term of drop if their coins goes down that is called dump.  And pump another term of up if the price goes up that is called pump. 

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July 11, 2017, 10:36:22 PM
 #27

They're everywhere, not just crypto. The difference is that in traditional markets it can be against the law. There's no such thing with crypto. Perhaps there will some day as it's outrageously blatant.

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July 11, 2017, 11:30:58 PM
 #28

hi all.,

i am not a day trader , so i dont know much about these terms.,

there was trollbox on polo where people used to say pump and dump specific coins. but trollbox is gone now.,

from basic understanding dump means DROP,
does the PUMP means buy ?







I don't think that we need any charbon for the pump and dump , because those pump and dump
Arise in the market due to the reason of the marketing of the coin , technology at which the coin is based ,
And speed of the network , that means how the network fastly confirm our transaction .
Now here I am happy that the troll box has been closed because many people were making pumping of the coins
Which are fake and have no better technology and making money by us through the money rotation .
So here the condition is good for us to make legit trade .
But unfortunately all the market is down , so I think we should wait for week until.the price get up .


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July 11, 2017, 11:40:27 PM
 #29

hi all.,

i am not a day trader , so i dont know much about these terms.,

there was trollbox on polo where people used to say pump and dump specific coins. but trollbox is gone now.,

from basic understanding dump means DROP,
does the PUMP means buy ?







It is just a normal thing in the market the circulation of supply and demand in the market pumping isof thethis increasing of its price and the dump means the price in the market is goin down pumping and dumping was a normal and the best thing is just hold on in your coins.

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July 12, 2017, 12:08:11 AM
 #30

It is P/D. Means P for pump and D for dump. PUMP is when a price of a certain coin is going up and when we say DUMP it is the term in which a certain coin is going down. It is the nature of all coins. All coins undergo in pump and dump. Dude you should learn a little about trading, we need that.

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July 12, 2017, 12:42:08 AM
 #31

hi all.,

i am not a day trader , so i dont know much about these terms.,

there was trollbox on polo where people used to say pump and dump specific coins. but trollbox is gone now.,

from basic understanding dump means DROP,
does the PUMP means buy ?





Pumping or a pump, in the market usually means, a surge in a price of a certain coin, and dump is the opposite of that, so when a certain coin starts to lose its value, that is called a dump. For most coins, they go through this. Also in traditional markets, pumping and dumping is considered illegal while in the cryptocurrency world it isn't. In normal markets, it is regarded as an illegal scheme which boosts the company's stock price by false and misleading advertising, then the owners of the shares, sell their shares for a higher price than expected. 


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July 12, 2017, 10:13:39 AM
 #32

Well these are just terms used for the movement of coins which goes up and down and determines when the best time to buy and sell would be. For me, a dump would be the indication of when the right time to buy is so i make it a point to check if a coin is dumping to see when's the best entry point in a trade.

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July 12, 2017, 03:59:00 PM
 #33

hi all.,

i am not a day trader , so i dont know much about these terms.,

there was trollbox on polo where people used to say pump and dump specific coins. but trollbox is gone now.,

from basic understanding dump means DROP,
does the PUMP means buy ?








A pump would mean that the price is going up so you'd prefer to buy before the pump happens. And the dump is the reverse where the price will free fall or at least drop significantly and you'd like to sell before that happens.

Since we have no fortune tellers (known ones at least) it's all a guessing game. Ofcourse you can follow certain patterns and read all the charts but sometimes even the unexplainable occurs. I'll give you one advice though that you should carry with you if you ever consider trading - Never listen to the trollbox.
Those words are actually  technical words on trading. All traders must now the meaning of the two because on that case you will going to know what move or decision will you consider doing at the first place. It's better to know the difference and meaning of the word. So the basic definition when we say pump , it is simply the time when the value or the market cap of a specific going rises while dump is obviously the vice versa. So have a prior knowledge about this will make you think and decide on what are you going to don on your tradings. You could base on the graph where you could monitor the changes of the price when you want to and always look up to your objective and goal.



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July 12, 2017, 04:23:14 PM
 #34

So many wrong answers and such an easy way to get better info. https://en.wikipedia.org/wiki/Pump_and_dump

Quote
"Pump and dump" (P&D) is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" sell their overvalued shares, the price falls and investors lose their money. Stocks that are the subject of pump and dump schemes are sometimes called "chop stocks".[1]

While fraudsters in the past relied on cold calls, the Internet now offers a cheaper and easier way of reaching large numbers of potential investors.[1]

Yes.

The "pump" is not the increase in price. The pump is the promoting that causes victims to buy, which causes the price to rise. The scammer buys before the pump so that they can get the maximum profit when they sell.

The "dump" is not the fall in price. The scammer dumps the shares at inflated prices to the victims that buy as a result of the pump. The fall in prices happens after the dump when there are no more buyers to support the inflated price.

A "pump group" is a scam. Here is how it works:

1. The scammer creates a "pump group" convincing each member that they are on the inside and that they will profit.
2. The scammer selects a coin and buys it doing their best to pay the lowest price possible.
3. The pump. The scammer announces the time and date when members are supposed to buy.
4. Smarter members buy early, the rest buy at or after the announced time and date.
5. The price starts rising and members and others start buying.
6. The dump. The scammer starts selling as the price rises.
7. The buyers dry up and the price falls.
8. The scammer and some members make money, but everyone else loses.

The pump group scam works because of the belief that the pump is the rise in prices and the dump is the fall in prices.

Finally, this is not all theoretical. I know a guy that does this now, and some old-timers might remember Fontas, who was (and probably still is) a master of pump-and-dump.
You indeed have very well explained pumps and dumps. But what I want to add is Pump and dumps are not termed as scam in a Decentralised market as cryptocurrency market where there is no rules and regulations. It might be unethical on a human level but not scam. Nobody can really questions those admins of pump and dumps group sadly. Traders themselves need to be bit cautious while trading.

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July 12, 2017, 11:22:14 PM
 #35

It is P/D. Means P for pump and D for dump. PUMP is when a price of a certain coin is going up and when we say DUMP it is the term in which a certain coin is going down. It is the nature of all coins. All coins undergo in pump and dump. Dude you should learn a little about trading, we need that.
pump and dump are use for increasing and decreasing of the price of bitcoin. when the price of bitcoin is increasing we are using pump for it and when its price is decreasing then we are using dump for it.

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July 12, 2017, 11:29:24 PM
 #36

Its obvious pump is price increase and dump is drop or falling price of bitcoin or any altcoin..
This is a dumb question and other people are just adding more meaning even you don't need to explain almost whole page of the book about dump and pump..
There are some altcoin increasing its value because of the 1 group of pump and dump they are trading in 1 altcoin  they want to pump its value so the 1 group will invest to increase the value of altcoin.. and dump if the group seen the price is starting to increase and the 1 group are making profit so that anytime they can dump their own altcoin to get the benefits and those who are late in investment they will lose..

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July 13, 2017, 04:00:27 AM
 #37

So many wrong answers and such an easy way to get better info. https://en.wikipedia.org/wiki/Pump_and_dump

Quote
"Pump and dump" (P&D) is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" sell their overvalued shares, the price falls and investors lose their money. Stocks that are the subject of pump and dump schemes are sometimes called "chop stocks".[1]

While fraudsters in the past relied on cold calls, the Internet now offers a cheaper and easier way of reaching large numbers of potential investors.[1]

Yes.

The "pump" is not the increase in price. The pump is the promoting that causes victims to buy, which causes the price to rise. The scammer buys before the pump so that they can get the maximum profit when they sell.

The "dump" is not the fall in price. The scammer dumps the shares at inflated prices to the victims that buy as a result of the pump. The fall in prices happens after the dump when there are no more buyers to support the inflated price.

A "pump group" is a scam. Here is how it works:

1. The scammer creates a "pump group" convincing each member that they are on the inside and that they will profit.
2. The scammer selects a coin and buys it doing their best to pay the lowest price possible.
3. The pump. The scammer announces the time and date when members are supposed to buy.
4. Smarter members buy early, the rest buy at or after the announced time and date.
5. The price starts rising and members and others start buying.
6. The dump. The scammer starts selling as the price rises.
7. The buyers dry up and the price falls.
8. The scammer and some members make money, but everyone else loses.

The pump group scam works because of the belief that the pump is the rise in prices and the dump is the fall in prices.

Finally, this is not all theoretical. I know a guy that does this now, and some old-timers might remember Fontas, who was (and probably still is) a master of pump-and-dump.
You indeed have very well explained pumps and dumps. But what I want to add is Pump and dumps are not termed as scam in a Decentralised market as cryptocurrency market where there is no rules and regulations. It might be unethical on a human level but not scam. Nobody can really questions those admins of pump and dumps group sadly. Traders themselves need to be bit cautious while trading.

Of course most of these pump and dump groups can be considered scams since they'll use the foolishness of the many that participate to earn money for themselves. Most of then always buy before announcing and sell before announcing it. The way they do it can definitely be labeled as a scam.

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July 13, 2017, 05:59:48 AM
 #38

Pump - pushing price go higher buy buying tons of coins so will increased price.  Pump/Up
Dump - pushing price down buy selling your coins holding so the newbie traders will go sell also then the price will decrease Dump/down



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July 13, 2017, 08:59:03 AM
 #39

They're everywhere, not just crypto. The difference is that in traditional markets it can be against the law. There's no such thing with crypto. Perhaps there will some day as it's outrageously blatant.
There could be laws against market manipulations but when traders doing it in group they are not getting noticed and still getting their benefits of pumps and dumps.

@OP
Pumps and dumps are nothing but manipulating market prices as per one's wish. It is possible with a trading asset when it is not having enough volume. Almost all cryptos are currently vulnerable to get pumped and dumped as there are whales to do so. But when cryptos grow with more userbase who will be adopting, these whales will lose their power then crypto will become secured from manipulations.
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July 13, 2017, 09:03:59 AM
 #40

If you want to feel it? I can tell you a low cap coin to buy and dump on your head. Smiley

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