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October 13, 2018, 06:20:39 PM |
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Hello guys! today I want to discuss something about "Pump and Dump" groups.
Its very important lessons for a traders specially for new traders. You should be careful about this type of scammer.
Buy low, sell high; do not follow the green candles, let’s pump until 87,000 Satoshis and dump it at ATH (All Time High). These are just a few notable phrases of the chat groups where hundreds and thousands of cryptocurrency traders gather all together to increase the value of an altcoin.
These types of groups, normally referred to as ‘pump and dump‘ groups, are bringing market manipulation to a whole new level. Nefarious crypto traders use secure messaging platforms like Telegram to orchestrate coin manipulation to make a quick buck — at the cost of less experienced traders. If you’re getting into cryptocurrencies, or just curious about the field, you’ll need to know how pump and dumps work. Otherwise you might up being taken advantage of, like I was.
When I got dumped by a ‘pump and dump’
Here
I started trading in cryptocurrency a while back, being a tech savy person I was quite enthusiastic about the technology. I was entirely unaware of these scams at that point, but I was definitely part of some Telegram and Whatsapp groups where people were on daily basis selecting low-priced coins to turn it into a gem for others to hop on. Since newbies always follow the green candles, it’s easy for more experienced traders to use them for their own gains.
But I didn’t notice this pattern until a certain coin — which I was quite excited about — was about to be launched on one of the largest cryptocurrency exchanges. The coin looked promising and the exchange even tweeted about it. Everything looked great, but then something happened that I’d never experienced before. Right after the tweet, I started observing how the coin started to inflate in value on other exchanges. But what surprised me the most was that the trading didn’t start on the exchange where it was actually about to be launched.
I waited and waited until trading opened, I was hustling to find the right price to jump in. The price was flickering in front of my eyes from $20 to $18 then from $16 to $19, I unluckily grabbed the coin at $18, hoping it would turn into a gem. But I was sorely mistaken because it suddenly dropped to $9, thankfully I lost my patience at the right time and only lost half of my invested coin. Rest remains history and that coin closed at $2 the same day.
What I figured out later was that I had become a victim of a pump and dump scheme. Unfortunately this is happening far too often in the crypto world and mostly happens with small market cap and circulation coins. It’s really hard to actually stay completely safe and not become a victim of these schemes. The only possible defense is understanding how pump and dumps happen and what kind of people are behind it.
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