What actually makes a token pump?

[Josefjix]

I'm starting with DIA. It is listed on top exchanges, has good partnership, the team isn't relenting and its price still drops drastically. So, I put up the question to learn with the trend on what actually thrives the price of a token/coin?

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[Jawhead999]

That would depends from a lots factor :
1. Demand > Supply
2. Influencer
3. Good crypto news
4. Trend/Hype
5. Bitcoin price pump, etc.

AFAIK DIA is a new DeFi token, that's why the price reach new ATH on August (DeFi hype). Bad news on DeFi token (YAM crash, Sushi crash) and Bitcoin is dumped probably the reason. Because most of altcoin will always following the Bitcoin price as the mother of cryptocurrency.

[AmoreJaz]

if i may add here, if we're not talking about defi tokens only. good example for pump coins are masternode coins, but they are not only pump but pump and dump. so that kind of movement depends on the team behind the project. usually they do such pumps at early stage of their listing, once naive users are continuously buying, they will slowly start to dump and then gone..the reason why there are so many dead alts. because the aim of most of these projects is to rekt those buyers.

what else is the reason of pump? to create noise in the market. if there's no solid reason why a specific coin is pumping, then be sharp as their downfall is approaching!

[mk4]

Besides Bitcoin(BTC), fundamentals doesn't really matter that much in the cryptocurrency space. Basically, which projects pump in price completely depends on how much effort and money they throw at marketing their coin. 🤷‍♂️

..and this is assuming that certain projects actually has a good use-case and are actually legitimate. Which, most projects really don't have both.

[Josefjix]

Besides Bitcoin(BTC), fundamentals doesn't really matter that much in the cryptocurrency space. Basically, which projects pump in price completely depends on how much effort and money they throw at marketing their coin. 🤷‍♂️

..and this is assuming that certain projects actually has a good use-case and are actually legitimate. Which, most projects really don't have both.

Using this ideology in the case of DIA, what do you think is the problem with the downturn price in the market and they have partnership trooping in almost every week.

[Stedsm]

Besides Bitcoin(BTC), fundamentals doesn't really matter that much in the cryptocurrency space. Basically, which projects pump in price completely depends on how much effort and money they throw at marketing their coin. 🤷‍♂️

..and this is assuming that certain projects actually has a good use-case and are actually legitimate. Which, most projects really don't have both.

What did these DeFi projects have rather than yield farming and liquidity pooling? I really don't see anything "exceptional" in it when the token was not really meant to be valued based on a price tag but still, it crossed BTC and is now worth over 2 BTC and many shit tokens which have no use case are also being fled higher by the investors just to dupe innocent investors and steal their money this way. I remember old times when we saw 100x coins too since the beginning of crypto, but these 1000x and then a DeFi-nite crash is the all new trend currently.

Using this ideology in the case of DIA, what do you think is the problem with the downturn price in the market and they have partnership trooping in almost every week.

Very unusual to say, but everything follows the trend and the ongoing trend is now bearish atm, which is why this one went with the flow.

[mk4]

Using this ideology in the case of DIA, what do you think is the problem with the downturn price in the market and they have partnership trooping in almost every week.

I literally know nothing about this "DIA" project, but one thing's highly likely: they're lacking in the advertising and social media department because "branding" and marketing in general is what makes coins pump in price. No matter how god-tier level a certain project is, if anyone barely knows it, there's a good chance that it wouldn't gain traction in terms of getting people to rush in and buy that certain coin/token.

[teosanru]

That would depends from a lots factor :
1. Demand > Supply
2. Influencer
3. Good crypto news
4. Trend/Hype
5. Bitcoin price pump, etc.

AFAIK DIA is a new DeFi token, that's why the price reach new ATH on August (DeFi hype). Bad news on DeFi token (YAM crash, Sushi crash) and Bitcoin is dumped probably the reason. Because most of altcoin will always following the Bitcoin price as the mother of cryptocurrency.

I think there are just two types of reasons for Bitcoin Pump. One is the utility and second is manipulation. Whenever a token is useful it would get naturally pumped even if it goes at a gradual pace like Chain-link which actually showed a great pump after it proved results. On the other hand there are certain tokens which are purely manipulated by some whale groups who take the price up either by hiring influencers or using some other mode. It's easier to find utility of a token but impossible to find manipulated tokens.

[Paycoinzzz]

It depends on the institutional investor, also depends on whether the organization wants to go far or just speculate short-term with the project.  in the past we have projects like WING, EGLD, RUNE and they are all listed on Binance.
Therefore, not a project with a good foundation is worth holding, we also have to analyze more about how the project distributes tokens to know whether it is a good or bad project.

[taufik123]

the trend / hype and good news are the strongest to make the token pump price.  for example, the UNI token is currently hype because they provide free tokens for some of its users and are currently hype.  the price is insane.  Many people have started switching to UNI tokens because of their listing on Binance and that has also driven the price up. 

Fundamentals are also an important part when tokens are pumped as well as other factors such as technical analysis, influencers, demand and supply and other factors.

[bitgolden]

I feel like the hype is depending on the marketing as well as community. If you do marketing very well and find a very hyped community, it will go beyond your wildest dreams thanks to them, you do not have to do anything, people who take up the token will be promoting it more than you ever could.

Project owners could talk about how awesome their project is all day and it wouldn't really do anything for people but if you end up having a huge community that promotes you, they will get their friends and family and online people all interested into the project as well. That is why I am trying to make sure that if there is a good coin out there that I want to invest, I will check the community, if there is a huge community everywhere even unrelated that means I can join.

[Krabby]

I'm starting with DIA. It is listed on top exchanges, has good partnership, the team isn't relenting and its price still drops drastically. So, I put up the question to learn with the trend on what actually thrives the price of a token/coin?

DIA is indeed a very potential defi coin, but just recently, bitcoin has been adjusted quite deeply so its value has been drastically reduced. Look closely, around the defi coin also plummeted like Sushi, SRM, SOL and COMP, ... the hype pushed the price of DIA up too high and human fear also made the price of DIA drop. So when it falls sharply in a short period of time, it is too normal, the defi trend will remain and it will continue to climb, dont worry mate.

[joniboini]

I'm starting with DIA. It is listed on top exchanges, has good partnership, the team isn't relenting and its price still drops drastically. So, I put up the question to learn with the trend on what actually thrives the price of a token/coin?

I'm seeing the same thing with my one or two projects on the watchlist (of course "a good project" might be different for everyone), so I wouldn't be surprised. The obvious answer is because not every holders of the tokens hold it for the fundamentals, they might trade it for the sake of getting profits every day and not long-term holding. Mix that with a low volume or bad tokenomics and you might see a lot of "P&D" on the market.

You should not chase pumps if you want a long-term investment, and always use the money you can afford to lose. That will help you from checking the price every day.

[iv4n]

What drives the price is supply and demand! Always! Is it natural or it is manipulation and that something affects the supply or demand, later that will have effects on the price! You can give me zillion other factors, but all factors you can think of will have something with supply or demand at first, if you have power/knowledge to manipulate with one of these two, you will have power over price as well! You can drive it in the direction you want.
It's economy in the real, but crypto market is the free market, you can follow the hype or don't, it's up to you! And depending on your decisions you will make profit, you can lose money, or you can be happy you didn't do anything, you kept your holding safe for future!

[The Cryptovator]

Many things work behind any coin/token pump. If you are talking about a natural pump then depends on the community. If a coin/token community increase rapidly then demand of that coin/token increase rapidly. As a result that coin/token price would bump naturally. Also, price somehow depends on the total and circulation supply. In simple words, if an increase buys pressure means you will notice a pump for that coin.

If you are talking about a sudden pump then there is some other reason. Most sudden pumps happen due to manipulation and market news. It creates a FOMO and traders jump on it. So that's how increase buys pressure and pump price as well. But that kind of pump doesn't last for long. So before you get in into any coin/token should realize the reason behind of pump. Then you will not regret later.

[bitbollo]

I'm starting with DIA. It is listed on top exchanges, has good partnership, the team isn't relenting and its price still drops drastically. So, I put up the question to learn with the trend on what actually thrives the price of a token/coin?

Most of the times you should take a look on milestones described in their white papers, or look specialized blog/forum were are described useful news (like a new partnership, or an upcoming fork!).

Pay attention, some coins can move just randomly due a low market cap. Never go all-in or waste an high amount of cash in these products.

[mu_enrico]

If it's about shitcoin pump: coordinated efforts from shiller (media), pumper (whales), exchange, and enthusiasts who got FOMO'd without realizing.

[CryptopreneurBrainboss]

I'm starting with DIA. It is listed on top exchanges, has good partnership, the team isn't relenting and its price still drops drastically. So, I put up the question to learn with the trend on what actually thrives the price of a token/coin?

So here's the catch, to you the price of $DIA token is dumping but to others, especially those that bought when the token wasn't in the spotlight like early adoptor, they're obviously in profit. If you check-out the token on coinmarketcap, it still shows that $DIA is currently giving a +50% ROI that's if you have bought within the timeframe they (coinmarketcap) started tracking the price. The best way to Invest in altcoins is to get in at presale or when no body is talking about it yet. It's a high risk, high rewarded game.

Concerning your question, the concept of pumping coins in the altcoin industry is quite simple. Get everyone talking about your project. A recent perfect example was the $UNI (Uniswap) token that got everyone in the community taking about them with their airdrop. We saw the impact that event had on the price of their tokens and if not for the bearish market conditions caused by the correction in bitcoin, more highs would had been recorded.

[carter34]

So, I put up the question to learn with the trend on what actually thrives the price of a token/coin?

I think the reason for that is bitcoin price which determines the price for altcoins. When bitcoin gets bull, most altcoins too get some bull and if bitcoin goes bear, it will also affect altcoins  no matter the technology.

[CarnagexD]

What makes a token pump is the demand, demand is based on the hype so basically we can say that demand is drive by several factors that lies in the marketing of the project. The only thing that will make the token pump is when the demand for it increases, there are key takeaways to do it. Noticeably, token pump follows the bitcoin trend, you can see a historic lift of the market when bitcoin reached its ATH last 2017, it was like a crypto party.