If you’ve been in the investment world for a while, you’ll know that pump and dumps are illegal. In cryptocurrency, being an unregulated industry, it’s a free-for-all, and pump and dumps are becoming a familiar sight.
In this article, written for the average investor who isn’t a savvy or particularly skilled day trader, we look at the crypto pump and dump phenomenon, and whether it’s something to get involved in.
What is a Pump and Dump?
The textbook definition of a pump and dump, according to Investopedia, is:
The illegal act of an investor or group of investors promoting a stock they hold and selling once the stock price has risen following the surge in interest as a result of the endorsement.
Namely, let me buy up some stock (in our case, altcoins), market the heck…