If you are following the scene you might have seen the phenomenon called pumps and dumps.
Most pump and dumps used to be coordinated on the poloniex chatbox but more recently the moved to Telegram and there is 1 group which stands out.
Pump Notifier/Trading Signals
They have had 'successful' pumps which go up to 1400%
The group is led by an individual calling himself Captain. Noone knows who he is but the rumors say he lives in India.
But after some searching it appears that our Captain isn't really being honest to everyone.
Some documents have been leaked which show of another private group called "The Hulks!! ~ Pumpers"
In this group he shared the signals in advance so that this group could make giant profits.
I personally read a report of someone who made 200000 Euro in a timeframe of 5 weeks.
The proof that it was all a scam can be seen in the following screens.
The first one is a detection script which detected the timeframe of the first pump.
The second one is the screenshot of the announcement of the pump in the public channel.
You can see there is a 5 second difference and by the time most people get in, the coin has already been pumped 500%.
I would like to warn everyone for these P&D groups. It seems everyday a new group gets organized with the only goal to make the admin's a lot of money.
What do you guys think about these Pump & Dumps?
Comment below :)