A coin you’ve never heard of is suddenly up 300% and everyone is talking about it. An hour later, it’s crashing. You may have just watched a pump and dump.
What Does Pump and Dump Mean?
A pump and dump is a scheme where a group hypes up a coin to push the price up (the pump), then sells all their coins at the top (the dump), leaving later buyers with the losses.
Example: A Telegram group quietly buys a tiny coin, then tells thousands of followers “this is going to 100x!” New buyers rush in, the group sells into them, and the price collapses.
Where Did the Term Come From?
Pump and dumps are much older than crypto. Stock scammers have used them for decades, famously with cold-calling “boiler room” firms in the 1990s. Crypto made them easier, because anyone can launch a coin and promote it online in minutes.
How to Use “Pump and Dump” in a Sentence
- “That coin was a classic pump and dump.”
- “The chart looks like a mountain. Pumped and dumped.”
- “Stay out of those Telegram pump groups.”
Related Words
- Shill: the people doing the pumping.
- Rug Pull: creators drain the project and vanish, a close cousin.
- Bagholder: who you become if you buy at the top.
How to Spot a Pump and Dump
- A tiny, unknown coin suddenly “trending” everywhere at once
- Countdowns, “last chance” messages or promises of 10x–100x
- A few wallets holding most of the supply (check on a block explorer)
- Price shooting straight up with no news, product or partnership behind it
Beginner Rating: ☆☆☆ — Easy to spot once you know the pattern.
Pro tip: If you’re hearing about a “secret” coin from a stranger online, you’re not early. You’re the exit.
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