RE: WHAT'S A "PUMP & DUMP"???

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WHAT'S A "PUMP & DUMP"???

in cryptocurrency •  8 years ago 

A pump and dump is when an individual with a lot of cash puts it into a small alt coin or company and that skyrockets the price. They then proceed to try and convince others to buy in and sell it at a peak. This then creates a herd mentality as the coin or stock loses in price creating a pumped up currency not really worth that value to drop. A few times it's insiders with more information about the news others it's just news dissemination.

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Thank you, that was helpful.
Now follwing you @encrypt

no problem, new to this community as well. Just know some trading jargon :P.

Very helpful information!

I am glad you too benefited @playfulfoodie.