​​ What Pump & Dump is and why you should avoid it? The BTC-Al | Sad, awesome and funny cats for every day

​​ What Pump & Dump is and why you should avoid it?
The BTC-Alpha team is in a hurry to tell you more:

Asset owners artificially increase (pump) their value to sell the (dump) as expensive as possible to inexperienced traders.

This very scheme can be considered fraudulent. It appeared long before cryptocurrency trading and led to the so-called South Sea Bubble.

How does it work?

Fraudsters buy tokens in small portions so as not to provoke a sharp rise in the rate. As a rule, these are little-known cryptocurrencies or shitcoins.

After that, a pump begins, where the organizers of the scam, through their bots, place and take large orders to buy a token, raising its quote.
Also, for an even stronger effect, various news about partnerships and updates are used.
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