It’s a bit incorrect to use in this situation because there really isn’t a dump. It’s normally used for stocks. Somebody pumps a stock up either by buying aggressively or creating a lot of hype (like an Elon tweet). Then the person that pumped the stock dumps it to cash in on the people buying at a much higher price due to the hype.
To make it easy, when basically you launch a crypto coin (mainly shitcoin that you create with less than 50 usd) with a lot of hype, wait it for a 'pump' aka increase market cap and value, then you 'dump' it aka you sell it off in a single or multiple shots, and cash in (it's a scam basically as you leave the others with empty pockets)
I keep hearing "Pump and dump" now tonight. Never heard it before. What exactly does it mean?
It’s a bit incorrect to use in this situation because there really isn’t a dump. It’s normally used for stocks. Somebody pumps a stock up either by buying aggressively or creating a lot of hype (like an Elon tweet). Then the person that pumped the stock dumps it to cash in on the people buying at a much higher price due to the hype.
To make it easy, when basically you launch a crypto coin (mainly shitcoin that you create with less than 50 usd) with a lot of hype, wait it for a 'pump' aka increase market cap and value, then you 'dump' it aka you sell it off in a single or multiple shots, and cash in (it's a scam basically as you leave the others with empty pockets)