Pump and Dump
a.k.a. PND, P&D
A scheme where insiders hype up an asset they already own to drive the price up, then sell to the late buyers before it crashes.
In a pump and dump, a group quietly buys a small, thinly traded coin. Then the hype machine starts: chat groups, paid promoters, "this is going 100x" posts. New buyers pile in and the price rockets. While it's still climbing, the organisers sell everything to those new buyers.
With nobody left to buy, the price collapses, often within minutes, and the latecomers become bag holders. In regulated markets this is illegal market manipulation. In crypto it still happens all the time, especially with tiny tokens.
How the money moves
- Insiders buy a tiny coin at $0.01.
- A coordinated hype push sends it to $0.05 as outsiders rush in.
- Insiders sell their whole stack around $0.04–$0.05 into that buying.
- Buying dries up and the price slumps back to $0.012.
Bottom line: Insiders roughly quadrupled their money. The crowd that bought near the top lost most of theirs.
Joining a 'pump group' thinking you'll be early. The organisers are always earlier, and you're the exit.
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