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Crypto
Pump and Dump
When a group artificially inflates a coin's price with hype then sells off their holdings, crashing the price and leaving others with losses.
Pump and dumps are illegal in regular stocks but still happen in crypto because it's less regulated. They prey on FOMO. Always check trading volume and who holds most of the coins before buying something that's suddenly mooning.It's like a group of friends hyping up a garage sale item as the next big thing, selling it high to newcomers, then disappearing once the price drops.
Real world: Scammers promote a tiny coin on social media, the price skyrockets from new buyers, then the promoters cash out and the price collapses, leaving late buyers holding the bag.
💡 If a coin's price is pumping with no real news, be extra careful — it's often smarter to sit out the hype and wait for the dust to settle.