Learn All About Crypto Pump & Dump Scams & How To Avoid Them!
Have you watched the popular Netflix show Squid Game? If yes, you may have come across one group that began selling coins based on the show. Basically, that $SQUID coin had no connection with the show or Netflix, but that didn’t stop many from riding the hype wave, driving up its value to $2,800 before falling back dramatically to pennies in minutes. This resulted in the scammer making $2 million, whereas those who purchased the coin had to suffer massive financial losses. Insane!
Now, these are what we call the Pump & Dump scams run by groups. These groups represent the latest twist in the ever-changing story of cryptocurrencies, which have made some millionaires but, at the same time, driven others into financial ruin due to their extreme volatility. Perhaps it is due to the advancement in technology that as cryptocurrencies become easier to develop, scammers are taking advantage of people who are dreaming of becoming instantly rich by entering the crypto world.
These Pump & Dump crypto groups work with long-term planning. They target only some people and leave some people in a happy state to prove their loyalty in front of the world. How devastating!
Hence, this article discusses the growing Pump & Dump Crypto scams in detail. So let’s dive into it and find out the answer to your question, ‘What is the crypto pump and dump?’ Or ‘How do you spot pump and dump crypto’?
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What Are Crypto Pump-and-dump Scams?
You may be wondering who is behind these Pump & Dump Crypto scams. Well, let us make it easier for you.
Basically, online pump-and-dump operations are carried out by self-organized groups of people. These pump-and-dump groups plan the scams on the Discord server or Telegram, an instant messaging app that makes it possible for almost anybody to join the groups at any time.
In a pump-and-dump scheme, scammers gather a commodity over time, artificially inflate its price by spreading false information (pumping), and then sell what they have gathered to naive customers at a higher price (dumping). After these fraudsters have falsely increased the price, it instantly drops, leaving buyers at a huge loss. What was their mistake? Perhaps it was only that their decisions were based on extremely fake and misleading information. How devastating!?
How Do They Work?
When it comes to how these groups work on the internet, it varies.
The more active ones are likely to perform around one pump-and-dump cycle every day, whereas the less active groups may only perform one operation in a whole week. On the other hand, all other big or small organizations only engage in activity when they feel the market conditions are favorable.
So the question which arises is, how can you make money from pump-and-dump crypto? Now because a pump-and-dump scheme involves artificially inflating the value of a crypto asset shortly before a deliberate and unexpected drop, there is a huge possibility of making a profit from it. However, remember that you need to get rid of the unidentified coins quickly; otherwise, you’ll be stuck with them for a very long time.
We’d like you to remember two essential tips that should help you prevent scams like these in the future: If it sounds too good to be true, it certainly is. Before you send your money, think twice. Remember that crypto transactions are irreversible, which means you won’t be able to get your money back!
Nothing in the unpredictable cryptocurrency market is certain; therefore, familiarize yourself with the fundamental crypto metrics to prevent getting scammed by these projects that seem “too good to be true.”
Do you suspect that someone had scammed you?
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How Can We Stay Away From Crypto Pump and Dump Scams?
Cryptocurrency Pump and Dump scammers are using many new strategies to gain the trust of individuals and trick them into investing in a drowning currency.
After all, it’s 2022. Some scammers are so many steps ahead and hack into innocent victims’ digital wallets and rob them; you know digital theft is a severe crime nowadays, right?
Hence, to avoid this scam, understand that although everyone may seem rich when they enter the world of crypto, it isn’t the case. Do your homework! People who are familiar with coding can develop cryptocurrency coins or tokens pretty quickly.
Run some searches on the internet to find out more about any new coins that make you feel that they will instantly make you rich. Consider looking at a “white paper.” It will provide information on the coin, the people behind it, their goals, and other facts that will be part of the initial coin offering or ICO.
Moreover, always be on the lookout for influencers who barely ever mention cryptocurrencies but suddenly start promoting a token. Remember the famous FazeSaga/SaveTheKids Scam? Basically, the FaZe Clan members used a social media campaign to promote coins and handed out thousands of free coins to their followers, which encouraged more followers to purchase coins. I mean, if you REALLY need financial advice, try getting it from a professional and not someone who’s a pro at video games. After all, it’s your hard-earned money you’re dealing with!
Scams like these are the most profound betrayals and breaches of trust since they involve more than just money. As a result, many victims face social issues such as damage to reputation, vulnerability, isolation, and exposure. Furthermore, fraud harms a victim’s mental health, leading to anxiety, depression, and suicide. Therefore, always be on the lookout for such scams and stay active 24/7!
Key Takeaways - Contact The Claimers Today!
If you or your loved ones ever become a part of such fraud, come to us, ‘The Claimers, ’ as soon as possible. The Claimers is dedicated to handling your money back over to you. With just one click, you can find thousands of articles, case studies, and other information relevant to bank scams. For more information, visit The Claimers or reach out to us, and we will assist you in all the steps of getting your money back!
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