What does pumping cryptocurrency mean?
Pumping cryptocurrency is the process of artificially increasing the price of a crypto asset through coordinated actions by a group of traders or investors.
The main goal of pumping is to create the illusion of increased demand, attract other market participants, and then sell the assets at a higher price. This process often results in a sudden increase in price, followed by a drop, which can cause losses for inexperienced investors.
How does pumping work?
🔵 Organizing a group: Participants agree on coordinated purchases of a specific cryptocurrency, often via private chats or communities.
🔵 Sudden price increase: By actively buying the asset, participants create sudden demand, which drives up the price.
🔵 Attracting other traders: The price increase attracts new participants looking to profit from the trend, which further strengthens the movement.
🔵 Asset Dump: When the price reaches its peak, the organizers sell their assets. The price crashes, le… 2 replies
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