The most popular Pump & Dump groups
Practically every person starting his or her adventure with the market is a critic, and would like to earn money quickly and well, without much knowledge. It would seem that such a possibility is given to us by groups of the type “pump and dump”, “early signals”, or other of this type, which tell us what kind of a cryptocurrencies to buy, because its price will soon jump “to the moon”. Unfortunately, nothing could be further from the truth.
We can find groups of this type on various communicators and portals. Most often they are facebook groups, groups in Telegram or Discord application. They are led by specific mentors or gurus, who through their channels in social media promote their own image thanks to the “results” achieved during the pump.
Early signals really work
Yes, that’s right, there must be one condition we create them ourselves, and then we send them to other people saying there will be a pump. Most often the income from the pump itself is not enough, so the “mentors” create a “VIP group”, to get access to which you have to pay a fee set by the group administrator. The subscription can of course be purchased for different periods of time, but it often happens that the groups disappear after a certain period of time. Of course, the “life-time” option is the most advantageous package to which we are most often convinced.
The unpopular coins are the most common target for such groups. The reason is very mundane – low liquidity, high possibility to manipulate the price with little financial effort. Thus high percentage increases of such shares. A noteworthy factor influencing the detection of the price manipulation scenario is the capitalization of a given cryptocurrency, before the increase it increases significantly.
But there are results of these groups
In fact, when you look at what’s most often shown, it’s a good thing to earn money on it. There is a signal on the VIP group with some not very popular cryptic currency at the $10 level, it informs about potential increases to $16, after a few hours the information spreads over different fanpages when the price has risen to 20%, after some time the rate rises by 40% to $14 and it starts to drop sharply below $10 when the administrators start selling out what the administrators were accumulating at the beginning. It should be noted that usually, despite the rising price, we are not able to find a good time to exit. If that wasn’t enough, some of the pump&dump actions take a few dozen minutes.
Until recently, the controversial and well-known businessman John McAfee was supporting such actions, as well as promoting various projects and actions on his Twitter, where he charged an appropriate rate for each tweet. The result was deliberate, various cryptographers simply went crazy after the tweet, reaching gigantic increases and even bigger decreases after a few hours.
In the end
Invest in the ChI have an idea and as much as you can lose. The best investment is to invest in yourself and your knowledge. If you are a novice trader, buy a technical analysis book or a course on how to verify a project and invest.