Back to Glossary Risk & Scams

Pump and Dump · pump and dump

Price manipulation created by artificially hyping up buying interest, then selling off heavily by the organizers.

In this pattern, a group of people, through coordinated promotion and manufactured hype, rapidly drive up the price of a low-volume, little-known asset, then profit by dumping their holdings heavily at the peak, leaving the market to crash hard.

Assets with low liquidity and sudden, excited promotion on social media are common signs this pattern may be underway.

To see other terms and learn more about the market, head back to the glossary.

View All Terms