Among the terms frequently used by investors in the cryptocurrency markets are the terms “pump and dump”. The Turkish equivalent of the terms expressing the increase and decrease in value artificially in cryptocurrencies is pumping and draining. The Turkish equivalent of the terms that express the increase and decrease in the value realized in the cryptocurrencies is pumping and draining. These are misleading transactions in cryptocurrency market and investors need to be extremely careful.
Leak of misleading news to manipulate the market affects prices positively or negatively. The terms of pump and dump are the movements created in the market with this scam news.
Effect of Pump and Dump on the Market
In cryptocurrency market, fake inflation is done to create good marketing for a low-value cryptocurrency. This is expressed “pump”.
The methods used to effect the market are as follows;
1. Misleading news that does not reflect the truth
2. Social media posts
3. Spread the information that there is an opportunity to buy for worthless cryptocurrency
Pump and dump are operations performed by a group, not by a single person.These groups, called market manipulators, receive a high rate of cryptocurrency by negotiation among themselves and attract the attention of other investors by enabling the market to begin to rise. In this way, they continue to raise their price rapidly by increasing interest in worthless cryptocurrency. Investors who do not know about the market invest in this worthless crypto, thinking that it gains value, and thus the pump is realized. When the price reaches the level they want, they decrease the value again by selling all together. With this method, people who manipulate the market earn money themselves, and investors who do not know much about the market will lose money.
Cryptocurrency traders need to be very careful with market manipulations like this. We recommend that you act with the advice of platforms and analysts that you can trust while guiding your investments.
Icrypex allows you to trade consciously thanks to its transparent, fast and reliable platform. With daily and weekly analyzes and price charts, you regularly inform you so that you have an idea about the market and act with a vision. Icrypex regularly inform you with daily and weekly analyzes and price charts, so that you have an idea about the market and act in a predictive way.
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