Pump and Dump
A market manipulation scheme where a coin’s price is artificially inflated, then quickly sold off for profit.
A Pump and Dump is a classic crypto scam
where groups hype up a low-volume coin,
drive its price up fast (the pump),
then sell everything at the top (the dump) —
leaving late buyers with heavy losses.
These schemes often happen in small or new tokens
with low liquidity, making them easy to manipulate.
Why it matters
- It creates fake market excitement and traps new traders
- Prices can crash instantly once insiders sell
- It’s illegal in regulated markets and banned on major exchanges
Always be skeptical of “next big thing” coins that suddenly trend
without any real utility or project behind them.
💡 Lanzo Tip
If a coin’s price is pumping without clear reason or news,
don’t FOMO in — real projects grow steadily, not overnight 📉