Pump and Dump
A scheme that inflates a coin's price with coordinated hype, then sells into the buying for profit.
Organizers accumulate a cheap, thinly traded coin, then drive a buying frenzy with coordinated hype — often in private Telegram or Discord groups. As outsiders pile in and the price spikes, the organizers dump their bags.
The price collapses, and the latecomers become bag holders. This is illegal market manipulation in regulated markets, and prosecutors have charged crypto cases the way they charge penny-stock fraud. Low liquidity is what makes it work — a small amount of buying moves the price far.
Related terms
Aggressively promoting a coin to others, frequently for personal gain and often without disclosing the payment.
Bag HolderAn investor stuck holding a token that has collapsed in value, with little hope of recovery.
Meme CoinA token built on a joke, trend, or mascot, with value driven almost entirely by hype rather than utility.
LiquidityHow easily an asset can be bought or sold near its current price without moving that price much.