The widespread acceptance of cryptocurrencies, and the scope of the crypto market, which is substantial enough for people to make millions off of it, will inevitably draw those with malicious motives. Based on the decentralized nature of cryptocurrencies, immoral behaviours are familiar to consumers, and a pump and dump is just another avenue for malevolent operators to scam gullible investors out of their hard-earned money. The other party will ‘pump’ the market by buying considerable amounts of low-priced cryptocurrencies to unfairly boost the price of their trading platform once the newest member user puts their money. The platforms will also make it appear as if the user has access to special, secret, and highly effective trading methods, but these claims are obvious lies meant to attract the user into the scheme.
Defi-Gamefi.com is a website that helps individuals learn how to make money in the metaverse via gaming. Recently it warned new and novice traders about a type of crypto scam known as a “Pump and Dump.”
Raul Meza, a writer for Defi-Gamefi.com, covers pump and dump schemes in the video. Pump and dump schemes feature fraudulent internet trading platforms having limited access or are difficult to reach through normal channels. To ‘join the program’ or to be a share of the ‘pool,’ new traders who are offered tailored promotions for the sites must deposit a specific sum of money.
One major tactic to recognize unscrupulous traders is to look at their estimates for the whole crypto market and, as a result, claims for how much money people who utilize the trading platform stand to profit. The cryptocurrency market is extremely fickle, and major international events usually cause significant variations in the market capitalizations of major cryptocurrencies. Anyone claiming to be an expert on the matter is almost certainly looking to offload something to anyone who would hear them.
The article goes on to give recommendations to anyone willing to participate in the crypto sector on how to spot and escape pump and dump scams. According to the report, one of the most telling indications that an investor is visiting a dubious trading site is if they are encouraged to take a survey or questionnaire on the platform. Questionnaires are a deceptive approach to making the platform feel trustworthy.
Finally, the post warns users not to divulge their personal information such as their name, email address, phone number, password, or any other information that can be traced back to them. If an investor is solicited by a pump and dump scam, they can report the occurrence to the Federal Bureau of Investigation (FBI) or the Federal Trade Commission right away (FTC).
According to the article, any promises of constant income and profits should be treated with a dose of scepticism since they are hoaxes meant to tempt traders misled by the allure of making quick cash, much like most things in life that are too good to be true.