Glossary
The Pump and Dump is an illegal and unfortunately common market manipulation in the cryptocurrency sector. It involves artificially driving up the price of an asset (pump) through rumors, massive purchases, or misleading promotional campaigns, before quickly selling (dump) that asset once the price is high, leaving new buyers with significant losses.
This type of strategy is often organized by groups on social media, unscrupulous influencers, or even anonymous actors. Low-cap and low-liquidity cryptocurrencies are most often targeted, as their prices can be manipulated more easily.
Although the Pump and Dump is prohibited in traditional financial markets, it remains difficult to regulate in the crypto universe, particularly on decentralized platforms.
To protect themselves, investors must remain vigilant against sudden and unjustified price increases, aggressive promotional messages, or unknown projects pushed by influencers.