This case make me aware that investing on altcoin is so risky than bitcoin. I heard lots of information about pump and dump like what OP says. This is not good investment place I think, because the investor will get profit just because the other investor loss not from their platform or their function that can be adopt by human.
We should be very careful with this type of pumps because suddenly the price will drop to a lower value and i have experienced this many time with the pumps. So it is always good to grab the coin value should be very low compared to their ICO price. Which there is a chance to increase its price along with the development.