An insider scoop on why "PUMP" groups are a SCAM

[alani123]

A friend sent me an image from a pump group as I was selling some BTC on his behalf. Look at this timeline of events of this pump to find out how pump and dump groups scam people.

"Oh, since you're trading on Cryptopia check this out". 

                                                            "Haha ok" 

I didn't try to take part in the pump but I just observed the results. Volumes on Cryptopia remained low.

This is an hour and a half after the pump.

Those are the trades relevant to the pump. Starting only seconds after it was announced.


This is the message the "pump group" admin had 40 minutes after announcement:


Copied by my friend on our Skype convo because I'm not following the telegram Channel of the group.
This is what I had to say to my friend.

They lied...

I looked at the API logs for that coin

Started at 149 when they announced, peaked above 200 with pitiful volumes and then returned to 150 3 minutes later.

"Pump" groups like that are probably a scheme for the admins to offload coins on participants.

Takeaways from this post:
The volumes remained low. The trades taking place only peaked for 3 minutes, starting only a few seconds after the announcement. Before the announcement the previous trade was at 149 sats. The end report is obviously an exaggeration and blatant lie when volumes are so low. Not to mention that most of the participants of this group are fake anyway, but withing 3 minutes and with volumes so low it's obvious that something suspicious is happening here. It's very likely that the admins of that group simply offload on people for profit. As it would happen with any such scam. Archive of the cryptopia API here.

Note: the API uses UNIX time, I've calculated the timezone differences from the images.

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[cioloxl]

Don't really need a detailed post like that to prove these are obvious scams. Just think about it this way: why would anyone give these "tips" out for free? Like in the case of facebook or some other free website that provides a service, you're the product.

[Fatunad]

Don't really need a detailed post like that to prove these are obvious scams. Just think about it this way: why would anyone give these "tips" out for free? Like in the case of facebook or some other free website that provides a service, you're the product.

Its not really  necessary but why cant just appreciate on having a detailed information on here and op did make some efforts and clearly illustrating how these things go. This is helpful for those fool people who arent aware and still joining into this Pump groups. Seeing this post will really open their eyes and wont tend to join up again. Going back, ive never tried to follow these tips because im fully aware that those people who are making signals are already bag holders and hyping the coin just to secure out profits if fool investors would tend to buy out.

[alani123]

Don't really need a detailed post like that to prove these are obvious scams. Just think about it this way: why would anyone give these "tips" out for free? Like in the case of facebook or some other free website that provides a service, you're the product.

In the case of pump&dump, it's not advice. It's an orchestrated group effort to drive the price up. Those giving the information out NEED others to join. The dream scenario those try to perpetuate is that speculators & outsiders will get in and those being aware of the pump will profit. But that's not what happens most of the time. The price might go up very briefly but only a minority can profit from this. Even if volumes are big, some have to end up losing and usually it's the participants in the group other than the admins.

In this case the "pump" I observed was a great failure in all its aspects.

[briakelle]

The pump is banned in classic markets, the fact that it is on crypto is terrible ... it can kill good projects by lowering the cost of coins after the rebound. And many lose money.
The law of conservation of energy works and in this case. Spin the coins and get out about the hamsters? The problem is that you are hamsters for those who raise the wave and they go about you

[cioloxl]

Don't really need a detailed post like that to prove these are obvious scams. Just think about it this way: why would anyone give these "tips" out for free? Like in the case of facebook or some other free website that provides a service, you're the product.

Its not really  necessary but why cant just appreciate on having a detailed information on here and op did make some efforts and clearly illustrating how these things go. This is helpful for those fool people who arent aware and still joining into this Pump groups. Seeing this post will really open their eyes and wont tend to join up again. Going back, ive never tried to follow these tips because im fully aware that those people who are making signals are already bag holders and hyping the coin just to secure out profits if fool investors would tend to buy out.

Maybe I was misunderstood. I'm not saying PSAs like this one aren't appreciated, I only meant that such schemes should be obvious without providing proof of why they're scams. It should be implied that anything related to pumps, signals and other "free" services these groups provide on telegram, is to be ignored.

[Nichao]

Just an old, stupid way of pumping.. Thought, it is already dead, but no - looks pretty alive )

[mistajackson]

These pump groups are not worthwhile. I recommend staying away completely.

[cryptothief]

Yeah, they all pull the same tricks, even when there is volume involved. That's why they generally stick to low marketcap coins. I got lucky once and happened to hold a coin that was pumped, had a sell order on it for weeks and it just sold when it pumped. Nice surprise, but wouldn't touch any of the pump and dump groups with a ten foot barge pole.

[alani123]

Thanks for the merit!
I made this post because because many new users to crypto are falling for the trap of such groups. I'm thankful for the appreciation.

[Leonard2016]

Thank you for detailed information , I'm replying this to bring that upper in replying orders so that more people see it and find out VIP signal groups or any thing like that is just a new way of defrauding , If they were good enough they never needed to make a VIP channel and get money , they made it by themselves!

[Babylon]

Pump and dump groups are just using people to get some profit,
You could look at it as a pyramid scheme the last one to invest or get out is the loser.
Of course the one who is telling the group to buy it is the winner when the group actually believes it.

[electron-coin]

I think that any intelligent person will never listen to advice in such groups. Free cheese only in a mousetrap. Many people do not want to learn to understand the trade in crypto currencies (and this is a necessary condition for a successful trader). Since they are such lazy people, this deception will be a good lesson for them!

[xuan87]

Pump and dump group is not a good group to make profit, I ever joined once and observe what they're doing and turn out they asked more people to invest in one coin and in second count they already withdraw, so pump and dump only going to make the admin rich, they already know which coin to pump and already bought a alot before pump, don't join pump and dump group it's going to make you lost money

[YED]

Pump groups now are everywhere , you can see the chart of many scam coin big pump and after that a big dump the coin value rich 0 $ .

[trumper]

Pump groups are not scam, they are already all scammers, they just try to scam each other because basic of pump group is not something reasonable for making money. Let them play with each other.

[Hamphser]

Pump groups are not scam, they are already all scammers, they just try to scam each other because basic of pump group is not something reasonable for making money. Let them play with each other.

General thing, the scammer would be always the owner of such group where pump and dump signals been given where most victims are those people who do believe on such signal and when it had been told to buy on that price then they do follow it but there are people who are wise which they can utilize the scam attempts thru dump into its group owner that's why some people do still join up to make money and go along to that opportunity.

[alani123]

Bump (not pump) because I think this educational piece should be pushed a little more. Many newbies seem to be falling for the

pump and dump scam 

[samcrypto]

Bump (not pump) because I think this educational piece should be pushed a little more. Many newbies seem to be falling for the

pump and dump scam 

Newbies should not rely on this kind of scam group because its not good to do so and in the end you will just lost the money. What do you think they can get from you for being so generous, telling where to invest of course a huge money coming from their victims, be ware and stay away from this group of people.

[Tytanowy Janusz]

Bump (not pump) because I think this educational piece should be pushed a little more. Many newbies seem to be falling for the

pump and dump scam  

I was inside of few pump grups. It all depends on number of users. That creates volume. Cryptopia pumps with around 1-10k users are alwais fails. People only eats sellbook. Those who buy first mayby will have oportunity to sell to the last. Thats all. 1 min after pump there is huge spread (still no volume from outsiders) and then pump mebers are braking puting sell orders lower and lower to save part of investment. (just like You described it)

Big pump group (~ 100k users). I was inside one of them. They pump on binance coins with 500+ btc volume.

Pump looks diferent. Most often its just 5 min from 0 to 100%+ and back to 0. Sometimes when bull market is on they realy change how market looks like after it.

https://www.youtube.com/watch?v=qAZSFLpgY_Y - one of their pomp. Its not fake. I was waching it live. It was growing like that with few dumps next DAY too. This pomp caused volumen increase from 50 btc to 800btc in 30 min.

Pump and dumps groups are made to dump coins on users (just like you said) but not all of them looks like you show it.


To all who misunderstood. Pump and dump groups are not signal groups... they dont need vip or premium.

Pump and dump groups earn on dumping coins on users. Their member know that they need to be first or they will lost at least half of capital invested. Many of them are using it as gamble. Be first and earn 50% or be last and loose 50%. Some of them are there to know which coin will be pumped to trade on big variability after pomp. People have lots of strategy how to use this signal to earn (some of them earns sometimes. Some of them hardly ever). But leaders earn alwais.  If someone dont know it. He will learn after first pump.

Signal groups earn on vips. They just post technical analysys post for money from vip. There are many signal groups that convert to pump and dump group when it had enough of members.

They are not the same.