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    Pump and Dump

    Risk

    A coordinated pump to draw in buyers, then a dump by the organizers onto those buyers.

    Definition

    Organizers accumulate a low-liquidity token, coordinate a buying and hype wave through Telegram/Discord groups, ride the chart up on inbound FOMO, then sell into that flow. Outside buyers are the exit liquidity by design.

    The tell is usually an unnaturally vertical chart on a token with no news, paired with a suspicious volume pattern — a few aggressive buys, then a wall of sells. Joining a 'pump group' doesn't make you an organizer. It usually makes you the dump target with slightly better timing.

    Examples

    • Up 400% in an hour with zero news, dumped 90% the next. Textbook.

    • Pump group 'call' at 8pm, top wallets were already distributing at 8:02.

    • The only winners of a pump and dump are the people running it.

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