You must have seen them being posted in some of your crypto chat groups on Telegram: Pump and Dump Announcement channel invites.
It seems like an easy and fast way to make money. Maybe a bit too easy, perhaps? Here are some reasons why you should avoid these kind of groups, for your own good.
So how do they scam you? An overview of their tactics:
A. They advertise themselves and ask you to spread their channel invite to your friends.
B. They set a countdown timer for the pump. Reminding you from 3 hours onwards to just before the end of the countdown.
C. Meanwhile, they try to get you excited as much as they can.
D. Just before the beginning of the pump, they try to convince you that they are really legit --> no prepumps!
E. A few minutes before the coin announcement, they encourage you to buy at asking price (ofcourse they do --> more profit for them).
F. One minute before the coin announcement, they prepump the hell out of it (they always choose a coin in the red, so a prepump won't be noticed as much).
G. When they announce the coin in their channel, it's already up 25% or more.
H. Since they convinced you to buy at ASK price, you pump they price even further for them.
I. Two minutes later, the price drops of and you make a huge loss. Their solution for this?
J. Yeah.. Ok.. And to top it off, they make a screenshot when the green candle is at it's highest, to make it seem like everybody made a huge profit. Which is of course a tactic to draw in new people they can scam in the next pumps.
People, just don't buy in to these get rich quick schemes. Because the only ones that are getting rich quick, are the ones that are in their inner circle and are making money due to Market Abuse. Which in a regulated market would be a crime, punishable with several years in prison.
Here is a list of known scammer groups (i will be adding new ones as I learn about their existence):
- Money Maker Club (http://moneymaker-club.ml/)
- Hyper PUMPS - Only PUMPS
Stay smart, think for yourself. And most important, pay it forward. So your friends won't fall victim to these kinds of scams as well.