What strategies do pump and dump crypto groups use to manipulate prices?

1 answers

• Hammond BjerregaardOct 13, 2022 · 3 years ago
  As an expert in the field, I can tell you that pump and dump crypto groups employ a variety of strategies to manipulate prices in the cryptocurrency market. One common tactic is to target low-cap cryptocurrencies with low trading volumes. By buying a large amount of these cryptocurrencies, the group members can create artificial demand and drive up the price. This attracts other investors who see the price movement as a sign of potential profit. Once the price has reached a certain level, the group members sell their holdings, causing the price to crash. Another strategy is to use trading bots or algorithms to execute large buy or sell orders in a short period of time. This creates a sense of market activity and can attract other investors to join in the buying frenzy. Once the price has been pumped up, the group members sell their holdings, causing the price to plummet. It's important for investors to be aware of these strategies and to conduct thorough research before making any investment decisions. The cryptocurrency market can be highly volatile and susceptible to manipulation, so it's crucial to exercise caution and make informed choices.
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