Pump and Dump
A market manipulation scheme where the price of an asset is artificially inflated through misleading statements, then sold off at the peak for profit.
Why It Matters
A pump and dump scheme involves artificially inflating a cryptocurrency's price before selling off holdings at a profit, often harming unsuspecting investors. Recognizing this tactic is crucial for avoiding scams and making informed decisions in trading.
Example
For instance, if a group buys a little-known coin and promotes it heavily, the price spikes as others buy in, but once they sell, the price crashes, leaving late investors with losses and empty promises.
Beginner Context
For newcomers, understanding pump and dump schemes helps navigate the often volatile nature of cryptocurrency markets. It underscores the importance of doing thorough research before investing.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Burn
The permanent removal of tokens from circulation, typically by sending them to an inaccessible wallet address. Burning reduces supply and can increase scarcity.
Market Order
An order to buy or sell a cryptocurrency immediately at the best available current price.
Cold Storage
Keeping cryptocurrency private keys entirely offline to protect them from online hacks. Cold storage methods include hardware wallets and paper wallets, and are recommended for long-term holders of large amounts.
GM
"Good morning." A friendly greeting widely used in crypto communities, regardless of the actual time of day. It became a cultural staple of crypto Twitter and community channels as a sign of camaraderie.
Aping In
Crypto slang for rushing into a large position in a token without much research, often driven by hype or fear of missing out. "Aping in" is associated with high-risk, impulsive behavior and is generally discouraged.