Crypto Pump and Dump EXPLAINED: How to Spot and Avoid It

Summary

Pump-and-dump schemes artificially inflate a token's price through coordinated buying and social media hype, then organizers sell at the peak — leaving ordinary buyers with losses. CoinGecko explains the mechanics, common patterns, and how to protect yourself.

Key Concepts

Things To Remember

• Pump-and-dump is illegal in traditional markets and extremely common in unregulated crypto.
• Coordinated Telegram/Discord groups frequently run these schemes on low-cap tokens.
• If you see sudden viral price spikes with no fundamental news, be very cautious.
• You are most likely buying from people who want to sell — they need your money to exit.

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