Crypto pump and dump groups are organized communities that aim to artificially inflate the price of specific cryptocurrencies. Usually, group members cooperate to collectively buy a particular cryptocurrency, causing its price to soar rapidly. This sudden price increase attracts other investors, driving the price even higher. Then, the group members sell their holdings at a profit, leaving the latecomers with losses. This is a form of market manipulation is unethical.
The crypto market is not regulated market, hence it becomes easy for scammers to maximize their profit by scamming others.
This article will review some of the most famous crypto pump and dump groups operating on social platforms like Telegram and Discord. We will also explain how crypto pump and dump schemes work, how to spot them, and how to avoid them.
How Does Crypto Pump and Dump Work?
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A crypto pump and dump scheme usually involves the following steps:
- The group leaders choose a target coin, usually a low-cap or obscure altcoin with low liquidity and trading volume. They also choose a specific exchange or platform to execute the pump.
- The group leaders secretly buy the target coin over time without drawing much attention to their activity. They also prepare fake news, rumors, or announcements to hype up the coin later.
- The group leaders reveal the target coin to their group members through a private or public channel. They also set a specific time and date for the pump to start. They may also provide instructions on how to buy and sell the coin, such as setting stop-losses, take-profits, or trailing stops.
- The group members hurry to buy the target coin as soon as the pump starts, creating a sudden spike in demand and price. They also spread fake news, rumors, or announcements on social media, forums, or other platforms to attract buyers and create hype.
- The group leaders and some early members start selling their holdings at a high price, cashing out their profits. This triggers a reversal in the price trend as supply exceeds demand. The latecomers who bought the coin at a high price are left holding the bag as the price drops.
How to Spot a Crypto Pump and Dump Scheme?
The easiest way to identify a crypto pump and dump scheme is when an unknown coin suddenly rises substantially without a real reason. This can be easily viewed on a coin’s price chart. Coincheckup, for example, has set a benchmark of a 5% price increase in less than five minutes as its indicator.
Another way to spot a crypto pump and dump scheme is to check the source and credibility of the information promoting the coin. If the information comes from an unverified or unknown source, such as an anonymous Telegram channel or a spam email, it will likely be part of a scam. Moreover, it is likely false if the information is vague, exaggerated, or unrealistic, such as promising huge returns or claiming insider information.
Furthermore, one can check the trading volume and liquidity of the target coin on different exchanges or platforms. If the trading volume and liquidity are low or concentrated on one exchange or platform, the coin is susceptible to price manipulation by a small group of traders.
How to Avoid Crypto Pump and Dump Schemes?
The best way to avoid crypto pump-and-dump schemes is to research before investing in any cryptocurrency. You should not rely on hype or FOMO (fear of missing out) to make investment decisions. You should also diversify your portfolio and invest only what you can afford to lose.
Some other tips to avoid crypto pump and dump schemes are:
- Avoid joining or following unverified or unknown Telegram channels or Discord servers that claim to provide crypto signals or tips.
- Avoid buying cryptocurrencies without fundamental value, such as utility, innovation, adoption, or community support.
- Avoid buying cryptocurrencies that have no technical analysis support, such as trend lines, moving averages, or indicators.
- Avoid buying cryptocurrencies that have no transparent or audited information, such as whitepapers, roadmaps, team members, or partnerships.
- Avoid buying cryptocurrencies that have no regulatory compliance or legal status in your jurisdiction.
Top 5 Crypto Pump and Dump Groups
Here are some of the most famous crypto pump and dump groups that operate on Telegram and Discord. We do not endorse or recommend joining these groups, as they are illegal and unethical. We only provide this information for educational purposes.
1. Big Pump Signals
Big Pump Signal is one of Telegram’s largest and most notorious crypto pump and dump groups. It has over 200k members and claims to have achieved over 500% profits in some of its pumps.
It usually targets low-cap altcoins on Binance exchange and reveals its pumps in advance through its public channel.
The group tries to identify the biggest crypto pumps and posts the results on their public group.
2. Crypto Pump Island
Crypto Pump Island is a crypto pump and dump group on Telegram. It has over 110k members and claims to have achieved over 200% profits in some of its pumps.
It usually targets low-cap altcoins on Binance exchange and reveals its pumps in advance through its public channel.
They have recently identified the 60% pump in KMD Crypto and have posted the pic in their public channel.
3. Crypto KuCoin Pump Signals
Crypto KuCoin Pump Signals is another large and infamous Telegram crypto pump and dump group. It has over 600k members and claims to have achieved over 1000% profits in some of its pumps.
It usually targets low-cap altcoins on KuCoin exchange and reveals its pumps in advance through its public channel.
4. Bitcoin Bullets
Bitcoin Bullets promises very high returns in few days. For Example, they have a basic plan called the rookie plan in which they claim to give returns of $3800 on a deposit of $500 in just 5 days.
Likewise, they also have veteran plan and Gold deposit plan which promise even higher returns.
The deposits are made through BTC,USDT and ETH. The community has over 200k members and the channel is active daily in posting.
5. FL Crypto Pumps
FL Crypto Pumps is a crypto pump and dump group on Telegram. It has over 10k members and claims to have achieved over 6000% profits in some of its pumps.
It usually gives holding trades on crypto coins. The group is more like a crypto signals service rather than typical pump and dump group.
They have a VIP paid group and it is not accepting new entries currently.
The Bottom Line
Crypto pump and dump schemes are fraudulent and unethical practices that aim to manipulate the price of specific cryptocurrencies for the benefit of a few at the expense of many. They are illegal in most jurisdictions and can result in severe penalties or lawsuits. They can also cause significant losses for unsuspecting or inexperienced investors who fall victim to the hype or FOMO.
Therefore, it is important to be aware of how crypto pump and dump schemes work, how to spot them, and how to avoid them. You should always do your own research before investing in any cryptocurrency and follow the best practices of risk management and portfolio diversification. You should also report any suspicious or fraudulent activity to the relevant authorities or platforms.
We hope this article has helped you understand more about crypto pump and dump groups and how to protect yourself from them. If you have any questions or feedback, please let us know. ????
FAQs
How can I join a crypto pump and dump group?
Crypto pump and dump groups usually operate on social platforms like Telegram or Discord, where they announce their target coins, pump times, and trading instructions. You can join these groups by following their public channels or servers, or by getting invited by their members. However, we do not recommend or endorse joining these groups, as they are illegal and unethical.
How To spot a scam Crypto?
Avoid buying cryptocurrencies that have no transparent or audited information, such as whitepapers, roadmaps, team members, or partnerships.
How can I report a crypto pump and dump scheme?
If you encounter or witness a crypto pump and dump scheme, you can report it to the relevant authorities or platforms. For example, you can report it to the Securities and Exchange Commission (SEC) in the US, the Financial Conduct Authority (FCA) in the UK, or the Australian Securities and Investments Commission (ASIC) in Australia. You can also report it to the exchange or platform where the scheme took place, such as Binance, KuCoin, or CoinCodex.
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