Let's be rich rich pumping coins!
Did all of you fully understood what the "Wolf of Wallstreet" was doing to become rich over uneducated people by making them buy penny Stocks?
Pump and Dump was the name of the game.
Basically you slowly buy a big amount of an low trade volume asset (in his case, stocks that were traded below 1 dollar) then convince a big amount of people to buy the same asset.
Since the trade volume is very low, this big amount people (wich have no Idea How fimancial markets Works) buy will drive the prices to a very high number in a very short time (pump). Then, at that high price, the Wolf started to sell that huge amount of penny stocks he bought earlier, making the price fall like a bread with butter on both sides.(Dump)
Does this sound familiar on the crypto markets?
What is different here is that stock markets are regulated, and everyone knows what happened to the Wolf.
Below is a good video by Douglas Polk i Just found that hits the bullseye on explaining How cryptos pump and Dump schemes work.
(Btw, he is one of the few Youtubers that is worth to follow that talks about cryptos)
