In the last months my eyes have opened for the Crypto-world. I've been really fascinated about Cryptocurrency, and I've tried to learn as much as possible. I'm trying to learn on Steemit, Reddit, Twitter, Udemy etc. and I recently installed Telegram.
And that's where my story starts. I opened my Telegram and started to search for different crypto-channels to join. The list was long. After a while, I had joined a few. Some of these were called "pump and dump".
They tell me I can get rich fast, so I get curious immediately.
And last night they scheduled the first P&D after I joined. I was curious, but I did my homework and researched on youtube.
And as I thought, if it's too good to be true, is mostly is. There is almost no way to get rich in many of the p&d-gropus. Often you will end up loosing money.
And the reason is easy. Most of the pump and dump-groups on Telegram etc. are flash-pumps. The pumps consist of two kind of people - the "Players" and the "pumpers".
The players are the ones behind the group. They find a crypto, buy a lot of it cheap, and when they're ready, they tell the pumpers in the group or community to buy it. The pumpers then buy like crazy to pump it up. But who are they buying the coin from? From the ones with cheap coins to sell - the players. You can also call them the winners (players) and the losers (pumpers).
Last night's pump-group came with notifications like "Don't panic sell", "We will be pumping in more money then last time, to make the pump last longer" - they even hoped to keep the pump going for 10 minutes.
And I sat there at 9pm, and nothing happened. I was logged in to my Bittrex account, they had just announced the coin, but nothing happened. Then I refreshed, and I saw this hugh flash pump at exactly 09:00pm. The coin went from 0,00024000 to 0,00042000 in a matter of seconds. But It went just as quick down again of course, after the players sold all their cheap coins to the pumpers for an incredibly high price. Today, the price are stable around 0,00024600, with no reason for it to go up again and save the pumpers/losers money.
The reason why I'm writing this is not because I want to get out my frustration because of some money lost, because I didn't loose anything. The reason is because I see that this group has 3000 members on Telegram, and there are tons of groups like this. People are tricked into believing that this are their chance to get rich. Even thought it only took me 4 minutes of research on Youtube to find out that P&D-groups were a no-go, people still do. If you just want to give away all your precious money, give them to the Red Cross or some organization doing something good instead.
Today I saw another p&d-group. This one had the balls to write a long list of how they will do it. No Pre-pump. They will hold the coins for at least one hour. They will try to attract FOMOS and other investors, so the pumpers in the group can win some too. I'm really curious to see if they mean it, or if we will see another flash pump 2 seconds after they share the coin-information in the group.
ps. I know that pump and dump are not a crypto-phenomenon, and you can find it in all the different markeds, but my post are about pump&dump-groups luring newly crypto fans into believing they can get rich fast.
I don't want to write names of users, groups or coins that has been used, because this it not an attack on the people behind the scams, it's a heads up to people that are wondering about joining such groups. If you're not a scammer, don't get insulted by this post.