A pump and dump scheme is a type of investment scam that involves artificially inflating the price of an asset, usually a cryptocurrency, through misleading or false information to attract unsuspecting investors. The scammers behind the scheme buy large amounts of the cryptocurrency at a low price, then hype up the asset through various means, such as social media or chat rooms, to create a sense of FOMO (fear of missing out) among investors. This sudden increase in demand drives up the price of the asset.

Once the price reaches a certain level, the scammers sell their holdings at a significant profit, causing the price to crash. This leaves other investors holding the asset at a much lower price than what they initially paid for it, resulting in significant losses. The scammers walk away with the profits, while the unsuspecting investors are left with worthless assets.

Pump and dump schemes are illegal and are considered a form of securities fraud. They can be difficult to detect because they often happen quickly and involve large numbers of people. The scammers may use fake identities and operate from different countries, making it challenging to hold them accountable.

If you are a victim of such scam and wish to hire our office or have any questions regarding your legal status you can contact us via our DefendMe Platform (https://defendme.global/) or via email office@defendme.global.

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