What is a Pump?

Pump is a scheme for manipulating the price of cryptocurrencies, in which a group of market participants buys a large number of tokens in order to artificially increase their value. After that, participants sell the purchased tokens at a higher price, making a profit.

How does the Pump work?

1. A group of participants (usually large market players) starts actively buying a certain cryptocurrency. This leads to an increase in its cost.

2. Other market participants, seeing the price increase, also start buying this cryptocurrency, hoping for a further increase in its value.

3. Large players sell their tokens to other participants at higher prices, making a profit from the difference in the cost of buying and selling coins.

4. The price of cryptocurrencies is plummeting as it has been artificially inflated. Those participants who bought tokens at the peak of their value lose money.

It is important to understand that a pump is an illegal market manipulation scheme and can lead to serious financial losses for market participants.

Examples of successful Coin Pumps in history

There have been several cases of successful cryptocurrency Pumps in history. However, they were often accompanied by manipulations and violations of the law. Here are some examples::

• In 2017, one of the most famous Pumps in the history of cryptocurrencies took place. Then the price of the Verge token increased more than 10 times in a few days. However, this growth was not caused by real changes in the project, but by active advertising and speculation. As a result, the Verge price quickly dropped, and many participants lost money.

• In 2021, there was another major manipulation of the cryptocurrency. This time, the Pump object is the Squid Game (SQUID) \ token. The token price has increased several times in a short period of time. However, after major players sold their tokens, the price of SQUID plummeted. Many participants lost their investments.

These examples show that Pumps can be very risky and can lead to significant financial losses. Therefore, it is important to be careful when investing in cryptocurrencies and avoid participating in such schemes."

If you want to invest in cryptocurrencies, it is recommended to conduct your own research of the project, study its team and the development roadmap of the project. It is also worth diversifying your portfolio and not investing all your funds in one cryptocurrency.