A pump and dump is a coordinated scheme: a group buys a thinly traded coin cheaply, hypes it in chats and social feeds, and sells into the rush of buyers it created. The chart looks like a rocket followed by a cliff, and most of the people who bought the rocket end up at the edge of the cliff.
The tell is the combination of a small, illiquid coin and a sudden wave of promotion. Before buying anything that is trending hard, ask one plain question: who is selling to me right now, and why? If the answer is "the people who told me to buy", the trade was designed with you as the exit.
💬 Have you seen a coin pumped in a group chat? How did it end?
Binance Academy covers this in more depth: https://www.binance.com/en/academy/glossary/pump-and-dump
Next lesson: If the returns come from new money, it's a Ponzi
Trading crypto from Dubai since 2019.
#PumpAndDump #ScamAlert #Trading