Pump and Dump Scheme
By CoinGecko | Updated on Aug 12, 2021
A scheme in which the development team (or short-term traders) hypes up a project without fundamental basis in order to pump up the price of the tokens temporarily and then sells their holdings immediately after launch to earn a profit. See the US SEC's investor alert on pump and dump schemes.
Related Terms
Token
Blockchain based unit of value issued by an organization, which grants token holders a right to participate in a network.
Difficulty
A relative measure on how difficult it is to correctly guess a new block
Permissioned Blockchain
It is a private blockchain where the nodes must be previously authorized by a central entity.
Rug Pull
Sudden removal of liquidity which typically leads to asset prices crashing from the lack of liquidity to absorb buy/sells.
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