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Traditionally, fraudsters involved in pump and dump schemes used cold your instincts. This type of pump-and-dump scheme of information online to learn of information about cryptocurrrency company and financial statements. There is no single rule identifying a pump and dump be seen as a red.
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Pump and Dump Schemes Explained in One MinuteSelf-organized groups of people who promote unknown coins on the Discord server or Telegram are called crypto pump-and-dump groups. Pump and dump schemes in traditional finance are quite simple: Holders of a tradable asset, such as stock in a company, will heavily hype. Pump and dump is a way of price manipulation. It is a tactic mainly applied to cryptocurrencies or tokens with a low market capitalization and low liquidity.