body{-webkit-animation:-amp-start 8s steps(1,end) 0s 1 normal both;-moz-animation:-amp-start 8s steps(1,end) 0s 1 normal both;-ms-animation:-amp-start 8s steps(1,end) 0s 1 normal both;animation:-amp-start 8s steps(1,end) 0s 1 normal both}@-webkit-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@-moz-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@-ms-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@-o-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}body{-webkit-animation:none;-moz-animation:none;-ms-animation:none;animation:none} h1, h2, h3 { font-weight: normal; } amp-story-page { background-color: #131516; } amp-story-grid-layer { overflow: visible; } @media (max-aspect-ratio: 9 / 16) { @media (min-aspect-ratio: 320 / 678) { amp-story-grid-layer.grid-layer { margin-top: calc((100% / 0.5625 - 100% / 0.6666666666666666) / 2); } } } @media not all and (min-resolution:.001dpcm) { @media { p.text-wrapper > span { font-size: calc(100% - 0.5px); } } } .page-fullbleed-area, .page-background-overlay-area { position: absolute; overflow: hidden; width: 100%; left: 0; height: calc(1.1851851851851851 * 100%); top: calc((1 - 1.1851851851851851) * 100% / 2); } .element-overlay-area { position: absolute; width: 100%; height: 100%; top: 0; left: 0; } .page-safe-area { overflow: visible; position: absolute; top: 0; bottom: 0; left: 0; right: 0; width: 100%; height: calc(0.84375 * 100%); margin: auto 0; } .mask { position: absolute; overflow: hidden; } .fill { position: absolute; top: 0; left: 0; right: 0; bottom: 0; margin: 0; } @media (prefers-reduced-motion: no-preference) { .animation-wrapper { opacity: var(--initial-opacity); transform: var(--initial-transform); } } amp-story-grid-layer.align-bottom { align-content: end; padding: 0; } .captions-area { padding: 0 32px 0; } amp-story-captions { margin-bottom: 16px; text-align: center; } amp-story-captions span { display: inline-block; margin: 0; padding: 6px 12px; vertical-align: middle; border-radius: 15px; background: rgba(11, 11, 11, 0.6); color: rgba(255, 255, 255, 1); font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif;; font-size: calc(4 * var(--story-page-vw)); line-height: 1.4; word-break: break-word; word-wrap: break-word; overflow-wrap: break-word; } How to Avoid Pump-and-Dump Schemes in Crypto [{"selector":"#anim-90b007a1-2e19-44cf-a262-9456159a7a93","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-2cb8a9bc-b5ab-4e57-a616-38d9b67ca78b","keyframes":{"transform":["translate3d(0px, -99.31093%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-4ba751ac-3593-45fb-9813-df31604c65f9","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

How to Avoid Pump-and-Dump Schemes in Crypto

Learn more[{"selector":"#anim-6e873323-ca03-444a-8fa8-fb828cca1c56","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-e63aa0c6-f76f-4102-8866-d35cedea7e16","keyframes":{"transform":["translate3d(0px, 93.63930%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-7430c52c-1856-40f0-957f-6228b91182aa","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

You may have heard of pump-and-dump schemes — when investors take advantage of an asset in a steep price increase (pump) followed by an even faster price fall (dump). These schemes can happen with different types of assets, including cryptocurrency.

Learn more[{"selector":"#anim-7330e23a-dcd9-4617-b2a4-82b427642aff","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-afb9d9e0-4be4-4352-91f8-bbfe46292daa","keyframes":{"transform":["translate3d(0px, 93.63930%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-4b6f1a4b-7c7d-4a51-bad3-26ec5a56f552","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

How to Identify a Crypto Pump-and-Dump Scheme There’s no rule for figuring out if a cryptocurrency is being used in a pump-and-dump scheme, which leaves investors to do their own research and use their own best judgment when deciding to take a chance on a coin.

Learn more[{"selector":"#anim-46eadba3-0895-4710-a2cc-74913b6a6f99","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-92b4e6b8-5083-47f4-b9a7-493dd8e3c0cc","keyframes":{"transform":["translate3d(0px, -99.64486%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-ebe69ec7-9232-43ee-a55d-f0dfed97ff1b","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}][{"selector":"#anim-bfb2c12a-5fcb-4444-9a4d-70264aa77ea0","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}][{"selector":"#anim-4dfcb523-ba18-4cbd-9812-cf98cb1395d2","keyframes":[{"transform":"rotate(-540deg) scale(0.1)","opacity":0},{"transform":"none","opacity":1}],"delay":0,"duration":1000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both","iterations":1}]

Major Hype

The biggest indication of a pump-and-dump scheme might be the excessive hype built up around a token or project. When someone writes a marketing email or social media post using phrasing like “this crypto is the next big thing,” or “this is Bitcoin 2.0,” and the price quickly rallies, it might signal a pump-and-dump.

1

Learn more[{"selector":"#anim-a4e4fb48-ee9a-4604-b1a4-6a932ac4d410","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-60abc510-ca10-41cd-8da5-8269e8926ddc","keyframes":{"transform":["translate3d(0px, -99.64486%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-00e6cffc-ffba-49a4-aeeb-c1aa0e340d5b","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}][{"selector":"#anim-c6e1138f-fd76-4370-8e3d-6e046ec6da58","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}][{"selector":"#anim-716b10af-4dd9-492b-8e5b-ec301b49c1fe","keyframes":[{"transform":"rotate(-540deg) scale(0.1)","opacity":0},{"transform":"none","opacity":1}],"delay":0,"duration":1000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both","iterations":1}]

Sharp Rise in Price

Another indication of a pump-and-dump scheme is the parabolic rise of a cryptocurrency’s price in a short period of time. This is especially true if the coin was previously unknown, ignored, or forgotten, but it can happen to any coin.

2

Learn more[{"selector":"#anim-2b0859c8-e1fa-4e60-9ff5-a4abaed7f07e","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-49b40f9e-6f8d-4bf5-8fd2-1b098c5513e0","keyframes":{"transform":["translate3d(0px, -99.64486%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-9ffbb2f1-3e4f-4388-b32d-2ecdd08fa1f4","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}][{"selector":"#anim-fd2d6195-d81b-4e21-87a1-f5106c82db3d","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}][{"selector":"#anim-f22fe5ef-127c-4e9d-843e-de054c40d4c5","keyframes":[{"transform":"rotate(-540deg) scale(0.1)","opacity":0},{"transform":"none","opacity":1}],"delay":0,"duration":1000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both","iterations":1}]

A Cycle of Publicity

When positive “news” tends to coincide with the purchases made by insiders, it adds to the illusion of something big happening. This creates a positive feedback loop where more potential buyers see what’s happening and bid prices up even further until what might just be an inevitable crash.

3

Learn more[{"selector":"#anim-e1e67881-a883-40f3-b8b6-16c0e69200e1","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-b8309d2d-59b7-45e4-b592-e6be7ae5113b","keyframes":{"transform":["translate3d(0px, -99.64486%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-54bfee1e-bbbf-4119-8739-18284176ea7d","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}][{"selector":"#anim-7101dcb4-7544-4523-9b0f-9d0563a7ba62","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}][{"selector":"#anim-e78a72b3-914c-4155-954e-f33dae3614d8","keyframes":[{"transform":"rotate(-540deg) scale(0.1)","opacity":0},{"transform":"none","opacity":1}],"delay":0,"duration":1000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both","iterations":1}]

ICOs

Whenever a new cryptocurrency gets launched (in an initial coin offering or ICO), it often serves as a pump-and-dump for a time. People become intoxicated by the promise of a new project, bid up prices, then the initial investors begin to cash out.

4

Learn more[{"selector":"#anim-2e028306-3ace-4f86-8829-65890b73b032","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-27dbf630-c67c-41e0-8f82-46a0d7a55dc0","keyframes":{"transform":["translate3d(0px, -99.64486%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-d8e32e04-b7d9-4bdd-b6f5-6a7a1fd6e180","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}][{"selector":"#anim-c6e0a78f-1607-4b1c-9889-c78455b4e0ed","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}][{"selector":"#anim-170ef95b-c824-4676-9e72-5135add2da5e","keyframes":[{"transform":"rotate(-540deg) scale(0.1)","opacity":0},{"transform":"none","opacity":1}],"delay":0,"duration":1000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both","iterations":1}]

Trying to take part in a known pump-and-dump scheme might be among the most high-risk endeavors an investor can take. The potential for quick, out-sized gains can often be a fantasy.

5

Learn more[{"selector":"#anim-8a25a113-a205-4a31-be2a-1ccc12a343b9","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-d135cac4-63a8-4ac2-a142-4468b71b305a","keyframes":{"transform":["translate3d(0px, -99.64486%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-e83905a7-1901-4b82-b86e-0f330804150e","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}][{"selector":"#anim-81125951-ef89-4f61-908b-b877aafd8d49","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}][{"selector":"#anim-282b28ff-a965-41ce-9b3a-d609007e1215","keyframes":[{"transform":"rotate(-540deg) scale(0.1)","opacity":0},{"transform":"none","opacity":1}],"delay":0,"duration":1000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both","iterations":1}]

Countless altcoins have fallen victim to crypto pump-and-dumps at some point throughout the years, and while there’s no way to predict a pump-and-dump, there are red flags to watch for.

6

Read The Full Article[{"selector":"#anim-7a67ecbb-a3b7-44e2-adc0-e3e8c132008c","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-72d7aa65-d532-48c1-9b0a-c09f32149ac9","keyframes":{"transform":["translate3d(0px, 94.14506%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-5177109e-d97c-4101-8c63-f7ea3a903957","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}][{"selector":"#anim-c4302d4b-4bd4-4218-883c-c626c2b0d62e","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Swipe up to Read More on Pump-and-Dump Schemes in Crypto!

Learn more[{"selector":"#anim-51b9ebdf-2616-4f5d-a3fe-6e37ac6e5ac5","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-aa09dbe4-9fe0-476d-bab2-2f192f636ccc","keyframes":{"transform":["translate3d(259.40593%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-4abd8135-c88f-4002-bc13-183f7c78de1c","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-89b323b3-e6fc-45c8-9714-673d6e702337","keyframes":{"transform":["translate3d(42.07921%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-685c747f-3c11-4464-95a8-143fe6221061","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-eb4e2a40-6bf7-4bdf-b06a-653fc05706e3","keyframes":{"transform":["translate3d(151.50000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-f5d5c1d8-a3b0-4a24-bf0a-ed2ba69ab5f3","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-d69f0c5b-488c-45ab-8bf5-83f37ef19349","keyframes":{"transform":["translate3d(-44.55445%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-709d0c09-9061-4981-b5d3-7531a56858c9","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-c3cc0127-cec1-4d79-9960-1d522ab48d00","keyframes":{"transform":["translate3d(-260.89109%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-5e35cd08-6864-48d1-ae0d-0bb2d23348ef","keyframes":{"opacity":[0,1]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-63f135c9-4a5c-4261-a7fb-d84c83a66751","keyframes":{"transform":["translate3d(-154.5%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

You may also like