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Author Topic: Pump and Dump Meaning?  (Read 120 times)
Sime77
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November 20, 2017, 12:05:16 PM
 #1

I have read about pump and dump in connection with altcoins and ICOS. What exactly does it mean and how do they manipulate the market using that approach?
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November 20, 2017, 12:17:28 PM
 #2

They hype or pump up the coin saying stuff like "x-coin will go to the moon very soon!" or like "y-coin will double in price in a month!" or something like that, therefore people who don't do their own research blindly buy those coins. Then after the price has risen to a certain extent, the pumpers will then dump the coins because they already have made profit; leaving the people who bought those coins some worthless coins.

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November 20, 2017, 12:32:16 PM
 #3

They hype or pump up the coin saying stuff like "x-coin will go to the moon very soon!" or like "y-coin will double in price in a month!" or something like that, therefore people who don't do their own research blindly buy those coins. Then after the price has risen to a certain extent, the pumpers will then dump the coins because they already have made profit; leaving the people who bought those coins some worthless coins.
So, can be cathegorized that altcoin like you said is scam. coin.
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November 20, 2017, 12:35:01 PM
 #4

it is a form of manipulating the market. as mjglqw said it is hyping some altcoin up so that people may buy more of it and as a result the price of that altcoin goes up. all fake.
but that is not all, it is not just hyping. there is a lot more to a pump than just spamming everywhere "buy x-coin, it will go to the moon". it is called "market manipulation" for a reason. the reason is because they manipulate the market then in addition hype it up in social media too. for an example of market manipulation is the fake buy walls the whales place to prevent the price from going below certain numbers.

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November 20, 2017, 12:46:39 PM
 #5

I have read about pump and dump in connection with altcoins and ICOS. What exactly does it mean and how do they manipulate the market using that approach?

First, the whales/manipulators accumulate a coin or a token. It might be a newly launched coin or an airdropped token, for instance, where they allocate themselves a huge portion of the supply.

Next comes the "pump." The whales hype the coin/token, releasing vague whitepapers and roadmaps, doing bounty campaigns, getting the coin listed on some of the altcoin exchanges.

Then comes the "dump." This is when the devs/whales dump the pre-mined or early accumulated coins on the investors while the prices are high. Since they introduce so much supply, creating so many bagholders, it is difficult for price ever to recover.

 
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DennisStoff
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November 20, 2017, 12:51:01 PM
 #6

it is a form of manipulating the market. as mjglqw said it is hyping some altcoin up so that people may buy more of it and as a result the price of that altcoin goes up. all fake.
but that is not all, it is not just hyping. there is a lot more to a pump than just spamming everywhere "buy x-coin, it will go to the moon". it is called "market manipulation" for a reason. the reason is because they manipulate the market then in addition hype it up in social media too. for an example of market manipulation is the fake buy walls the whales place to prevent the price from going below certain numbers.
it's getting hard for me to comprehend about pump and dump, really need to read more on this forum. thanks for the explanation.
BitcoinHodler
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November 20, 2017, 12:57:21 PM
 #7

So, can be cathegorized that altcoin like you said is scam. coin.

manipulation is always available in all the markets, that  doesn't always make the asset scam though. but in altcoin market since they are so tiny and easily manipulated compared to a big market like stocks market or precious metals, the manipulation is more visible and short lived.

it's getting hard for me to comprehend about pump and dump, really need to read more on this forum. thanks for the explanation.

maybe these two links help you to understand it better:
https://en.wikipedia.org/wiki/Pump_and_dump
https://www.investopedia.com/terms/p/pumpanddump.asp

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mast3rm1nd
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November 20, 2017, 01:00:35 PM
 #8

it's getting hard for me to comprehend about pump and dump, really need to read more on this forum. thanks for the explanation.
think of it this way: the price is pumped to attract new investors and new money and to generate hype. once the price is high enough the manipulators/scammers dump their positions for profit. and the people who bought for higher prices would suffer the most.

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