CryptoGal Glossary
Pump and Dump
A coordinated scheme where a group buys a low volume token, hypes it online to drive the price up, then sells on later buyers.
A pump and dump is a coordinated market manipulation. Insiders quietly accumulate a low liquidity token, then blast social media with hype so new buyers rush in. As the price spikes, the original group sells into that demand and the chart collapses within hours.
How it works
Groups plan the target token in private chats. On launch, coordinated posts, videos, and influencer shills push urgency: “get in now before it moons.” Late buyers create the volume that lets insiders exit. When they stop, the price falls straight down.
Red flags
- Sudden coordinated hype around a token you have never heard of.
- Messaging built around fear of missing out and hard deadlines.
- Anonymous promoters all pushing the exact same coin at the same time.
How to protect yourself
Never buy a token purely because social media is loud about it. Check on chain data for how concentrated the holders are and how thin the liquidity is. If a moment feels engineered, it usually is.
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