In the dynamic and often unpredictable world of cryptocurrencies, savvy investors are constantly looking for strategies to maximize their returns. One such approach, often shrouded in controversy yet practiced by some, is the crypto pump and dump strategy.
This strategy involves manipulating a cryptocurrency’s price deliberately through coordinated buying and selling tactics — artificial inflation.
While crypto pumps can be lucrative for those participating, they are risky and can lead to significant losses.
Before considering joining a crypto pump, it is crucial to understand the underlying mechanics of this practice and the potential risks and rewards involved.
What is a Crypto Pump and Dump?
A pump and dump is a less-than-ideal strategy where individuals or groups buy an asset, like a stock or cryptocurrency, artificially boost its price to attract more buyers.
Once other investors join in, the schemers sell off their holdings, causing a rapid price decline known as the “dump.”
This tactic often targets smaller companies with low market capitalization in the stock market, as their stock prices can be easily manipulated with a relatively small amount of capital.
In the cryptocurrency market, pump-and-dump schemes typically focus on low-market-cap coins with limited liquidity, making them susceptible to manipulation.
Unlike Bitcoin, which is resistant to such schemes due to its substantial market size, these smaller assets become easier targets.
While pump and dumps are clearly illegal in regulated markets like the stock market, the status in the cryptocurrency space is more ambiguous, given the lack of regulation in many jurisdictions.
Short-term and Long-term Crypto Pump and Dump
Pump and dump strategies come in short-term and long-term varieties, each with distinct goals. Short-term pumps unfold swiftly, with organizers selling off their assets in one quick move.
In contrast, long-term pumps aim for larger profits and occur in waves.
The initial wave involves a price hike, prompting coin purchases and a subsequent price drop. Then, a similar process recurs, but the second wave involves intensified marketing and larger buyouts.
Depending on the organizers’ goals, long-term pumps can extend beyond three waves.
Related: How To Short And Long Crypto?
Risks Associated with the Pump and Dump Strategy
On the face of it, pumps and dumps can be lucrative, but it’s essential to recognize the associated risks.
Firstly, ensuring you align with a legitimate group can be tricky, given the abundance of organizers claiming solid strategies but potentially causing chaos.
Moreover, the uncertainty of the strategy’s success poses another risk.
Investing a substantial amount in coins with the expectation of selling them at a profit may not yield the desired outcome if the pump-and-dump strategy proves less effective than anticipated.
Additionally, legal implications add another layer of risk. As some deem this strategy illegal, there’s a possibility of being reported as a scammer.
Where Can I Join A Crypto Pump?
Joining a crypto pump group might seem enticing, but it’s wise to steer clear. These groups not only engage in unethical and sometimes illegal practices but also deceive their members by front-running them.
Being part of a crypto pump group doesn’t grant insider advantages. These groups often have undisclosed “inner circles” who quietly accumulate cryptocurrency at lower prices before signaling the larger group to start buying.
By purchasing these coins, the unsuspecting members inadvertently provide liquidity to these insiders, who then sell off their holdings at a much higher price, causing a market crash.
Those left holding the coins are blamed for not acting quickly enough, bearing the losses.
Participating in crypto pumps and dumps is likely to lead to financial losses, disregarding the ethical and legal concerns tied to such activities.
These groups usually operate on platforms like Telegram or Discord, sometimes offering VIP status for early signals.
However, even these “VIP” users often lose, as these schemes primarily benefit the leaders and their closest associates, exploiting others for profit.
Having said all this, if you’re risk-averse enough to make the most of the crypto pump and dump strategy, keep reading to learn the best places to join these pump groups.
The Best Crypto Pump and Dump Groups
Numerous pump-and-dump groups are active within the crypto space, each employing unique strategies and tactics to inflate prices.
Let’s delve into a selection of the leading crypto pump and dump groups operating.
Big Pump Signal
Big Pump Signal stands out as one of the largest pump and dump collectives today, boasting over 70,000 members on Telegram and up to 200,000 members on Discord.
Membership to this group is open to all, without any initial fees, maintaining accessibility.
Additionally, they offer an affiliate program, granting privileges to those who refer others to join their channels.
Participation in the affiliate program offers early access to upcoming pump information, distinguishing it from non-referring members.
The group’s success hinges on its substantial subscriber base, who actively respond to pump calls and engage when the activity kicks off.
Sharks in Pump
Sharks in Pump stands out as a major Telegram group in the crypto sphere, boasting a substantial base of over 57,000 subscribers.
Their offerings include weekly Binance and Huobi pump signals. While some signals are complimentary, members enrolled in the paid VIP group receive 5-10 signals, known for their high success rates.
Mega Pump Group
The Mega Pump Group specializes in orchestrating pumps on Binance. It boasts a considerable following of over 50,000 subscribers on its Telegram channel. Its robust membership base contributes to rapid volume surges during pump events.
This group offers comprehensive information free of charge, contributing to its lasting popularity.
Within the community, members can access abundant trading insights. Additionally, the group hosts a support forum, fostering an environment for members to exchange ideas and seek advice on trading matters.
Universal Crypto Signals
The Universal Crypto Signals Telegram group is another option. The group was established in 2018 and has since garnered over 27,000 followers on its public channel.
Renowned for its impressive 96% accuracy in Binance altcoin trading, this platform utilizes various crypto signals telegram channels.
The channel’s experts deliver technical and fundamental market analyses irrespective of market trends.
With six different tiers available, subscription prices range from as low as $66 for a month’s service to $1200 for a year’s subscription at the highest tier.
The world of cryptocurrencies is a dynamic and often unpredictable landscape, offering both immense opportunities and inherent risks.
As an investor, your primary responsibility is to protect your capital and make informed decisions. This requires conducting thorough research, evaluating the legitimacy of projects and communities, and staying abreast of market trends.
All in all, patience, prudence, and a focus on long-term value creation are essential ingredients for success. By prioritizing these principles, you can increase your chances of achieving sustainable growth and avoid manipulative tactics’ pitfalls.