A cryptocurrency Pump and Dump group, also called PnD, is a group of scam artists that will first purchase an altcoin, often lacking liquidity, and then will tell their group to massively buy the same coin, driving the price of this coin higher and higher, hyping the coin.
A lot of traders will then see the price increase and “FOMO” into the market, making the rise even crazier. A few minutes after the pump, the buyers from the lowest price will sell their coins but telling their group to hold and not sell, because it is going higher.
However, their selling pressure is so big that the price will recover to its initial price a few seconds after they started selling.
Do not be naïve, this move is often too quick to be traded, and the risks are too significant.
If you search on Telegram, you will find many cryptocurrency groups with more than 50,000 members in it. Some of them offer “Free Calls,” but those calls can disguise pump and dumps scheme, even on the biggest exchange, some can have enough audience to make a coin pump more than 50% in a few seconds. We recommend staying away from this kind of scheme, which is supposed to be illegal by the way, but is not since we are in the cryptocurrency market, and thus, not regulated.