A scheme to watch out for is the Pump and Dump scheme. This is where a group tries to get their users to buy a token simultaneously. They hope to use their base to Pump the price up.
But what normally happens in these cases is that the group was already holding a large amount of these tokens. So when the price pumps, they are ready to Dump their tokens, causing the price to crash again. This lets them profit from their users, who are now stuck holding the tokens.
There are many Pump and Dump chat groups that advertise online. A lot of Discord spam is focused on exactly this, so please don’t fall for it.
These groups can have thousands of members and they all promise to get you in early so “you are the one profiting from the pump”.
In reality, the small team running these groups buy much earlier than when they schedule their users to pump. So they use their followers to dump the tokens onto…
People have lost a lot of money this way. Don’t fall for Pump and Dump groups, they are NOT out to help you. It’s just another scam.
Check out the report our TikTok team made:
Know what to avoid! Pump n Dump #scam #learnontiktok #fyp #crypto #cryptocurrency
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