What is a Pump and Dump?
The short answer
A scheme where a group artificially inflates a coin's price through hype, then sells at the peak, leaving later buyers holding the loss.
Often organised in private group chats coordinating who buys and promotes, and when the organisers plan to sell. A coin suddenly surging with no clear news behind it is worth treating with suspicion.
Related terms
Full glossaryCustodial Wallet
A wallet where a company (like an exchange) holds your keys for you.
Circulating Supply
The number of coins currently in public circulation and available to trade.
Exchange
A platform where you can buy, sell, and trade cryptocurrencies, usually for traditional currency.
Decentralization
Spreading control across many independent participants instead of one company, so no single party can change the rules…
Stablecoin
A crypto token designed to hold a steady value, usually pegged to a currency like the US dollar.
Rug Pull
A scam where developers abandon a project and disappear with investors' funds, often suddenly.
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