Please avoid pump and dump schemes in cryptocurrencies

in OCD2 months ago

Well a lot of investors have fallen for the trick/scam which is called a "pump and dump" schemes,i call it a scam because anything that is done to deceive someone in order to make money off them is a deceit and it is a scam for getting money from them deceitfully......

For those that do not know what a pump and dump scheme is??

well i will give a quick answer...

Pump and Dumps is a kind of scheme whereby a coordinator/coordinators or owners of a particular cryptocurrency will do their best to create a massive hype around that cryptocurrency especially via social media platforms and platforms that deals with cryptos,this tend to often make the crypto to become more poplar thereby leading to its demands,and the massive demands of the crypto makes its price to rise too even if it is going to occur for a short period of time....

So once the price of the crypto peaks,the coordinator of the crypto who is involved in the pump and dump schemes will ensure that they quickly sell off their assets in order to make profit.....and when they do that,guess what happens??this often makes the price of the crypto to drop suddenly,and guess those who often loose money when that happens ??the new investors who newly invested into the crypto and yeah the investors become hurt.....
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Now the truth is that the pump and dump schemes happens in every other financial sectors too but i decided to focus on the cryptocurrencies because that is what i have more passion for....

Infact based on researches it was discovered that more than fifty percentage of cryptocurrencies which are released are actually controlled by people who just want to participate in pump and dump schemes and run away with their profits if it becomes successful....

That is why we have to be very careful when trying to pick cryptocurrencies which we want to invest on...do not fall for the sweet talks,make sure you do an effective research,do not fall for the sweet promises,make sure the crypto have great features which makes it become valuable with or without hype...

Be careful of social media groups/platforms which you follow and listen to,some of them are fond of promoting cryptos which are controlled by pump and dump schemes experts....

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what even makes it scary is that even some crypto influencers are also guilty of intentionally promoting such schemes because they also have plans to get their own share from the profits made by the operators of the pump and dump schemes,so terrible i guess....

Investing in cryptos is a good decision to make in order to become financially successful but at the same time we need to be watchful and careful so that we do not fall for scams/schemes that will make us loose our investments....

thanks for reading.....

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