Pump groups manipulate prices of cryptocurrencies by having their members arrange large-scale crypto purchases. But only the initiators win.
Similar to windy stock traders trying to make quick money with penny stocks, a number of crypto investors seem to be filling their pockets as well. According to a report in the Future Zone , so-called pump-groups, which use the messenger telegram to communicate with each other, promise their members high profits by manipulating crypto courses. However, almost always only the initiators win.
The whole thing should work like this: By telegram message in a corresponding group their members are informed about, at which time on which stock exchange which crypto currency will manipulate. These are mostly unknown currencies with a very low trading volume. Buy hundreds or even thousands of users at the same time coins or tokens of such a currency, their course is driven within a very short time to unexpected heights - after a few minutes or hours, the haunt is over, the price drops back to the original level.
Stay away! - Manipulating cryptocurrencies with pump actions
Those who set up such pump groups, have a knowledge advantage and set up before the announcement of joint purchase over a long period favorable with the coins. After starting the action, the units are quickly repelled - usually automatically. The other participants must be lucky enough to be fast enough that there are enough willing buyers to follow them, so they can get rid of their coins. So you can only be warned about participating in such pump actions!
Have you ever been a victim of such stupid pumps and dumps?
Take care!