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
Unspent Transaction Output
(abbv. "UTXO") Coins that are unspent in the wallet. UTXO virtually represents the cryptocurrency one own in the wallet.
Validator
A block-signing participant of a Proof of Stake blockchain network, whom have significant tokens staked on the network.
Proof-of-Burn (PoB)
A consensus algorthm that assigns block validation queue based on the coins/token burned by the validator.
Proof-of-Authority (PoA)
A consensus algorithm that asigns block validation queue based on identity and reputation.
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