Pump and Dump
Market
Coordinated price spike followed by insiders selling.
A pump and dump artificially inflates price through hype or manipulation, then insiders sell to late buyers. Use caution around sudden spikes and poor liquidity.
Frequently asked questions
How do I spot a pump and dump?
Rapid price spikes with thin liquidity, aggressive shilling, and insiders moving tokens to exchanges.How can I protect myself?
Avoid chasing vertical moves, verify token contracts, and check holder distribution.Are pumps always scams?
No. Prices can move on real news. Focus on liquidity, supply, and risk controls, not hype.