Leonardo
Thu Jul 04 2024
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7 answers
1261
What is a pump-and-dump crypto scheme?
Could you elaborate on the concept of a pump-and-dump crypto scheme? I've heard this term used in the cryptocurrency community but am not entirely clear on its specifics. Is it a form of market manipulation where a group of investors artificially inflate the price of a coin through coordinated buying, then dump their holdings on unsuspecting traders, leaving them with losses? How does this differ from other types of financial fraud, and what measures are being taken to combat such schemes in the crypto space?
