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· @edhimuryanto ·
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@calprut ·
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json_metadata"{"app":"musing/1.1","appTags":["cryptocurrency","trading"],"appCategory":"cryptocurrency","appTitle":"Could someone explain about pump and dump in cryptocurrency trading ?","appBody":"<p>I will try to explain as simplest as i can.</p>\n<p><strong>Pump ---&gt; pumping price to the higher / highest level.</strong></p>\n<p><strong>Dump ---&gt; dumping the supply when the price reach that pumping point.</strong></p>\n<p>Pump &amp; Dump is a scenario for market manipulation to get profits in a short time.</p>\n<p>Who can do it? Of course, people who have large funds can do it, especially when supply and demand in the crypto market still do not reach equilibrium.</p>\n<p>Usually, altcoins have a higher risk of experiencing the scheme, because the supply and demand that occur in the market are not yet stable.</p>","appDepth":2,"appParentPermlink":"f3dchrecw","appParentAuthor":"edhimuryanto","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}"
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@divine-sound ·
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authordivine-sound
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json_metadata"{"app":"musing/1.1","appTags":["cryptocurrency","trading"],"appCategory":"cryptocurrency","appTitle":"Could someone explain about pump and dump in cryptocurrency trading ?","appBody":"<p>Pump and dump are usually out of <strong>excessive hype and speculation</strong>. When there is scheduled news or event, people speculate heavily and a sentiment of hype is made across the board and so many people including major investors <strong>buy the rumors</strong>, as a result the price in cryptocurrency shoots up.</p>\n<p>After the release of news or happening of the event, these people <strong>sell the fact</strong> and sell their position, as a result the price gets dumped. This is a very common and usual phenomena in cryptocurrency trading.</p>\n<p>In 2017, there were many cryptocurrency which based upon a scheduled hardfork,news, events etc many cryptos get pumped up, reaches the high just before the event and after the event, the cryptos got sold off.</p>\n<p>However this pump and dump works well in an extremely bullish market like we saw in 2017. In other period also it works, but the intensity remains low relatively.</p>","appDepth":2,"appParentPermlink":"f3dchrecw","appParentAuthor":"edhimuryanto","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}"
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@ijoel ·
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authorijoel
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json_metadata"{"app":"musing/1.1","appTags":["cryptocurrency","trading"],"appCategory":"cryptocurrency","appTitle":"Could someone explain about pump and dump in cryptocurrency trading ?","appBody":"<p>Often we hear someone (trader) say the word pump and dump. Both of these terms are specified in the world of Cryptocurrency.</p>\n<p>1) Pump</p>\n<p>Pump, comes from English which means pump.Pump which is meant here is related to price. Someone who has bought a coin (cryptocurrency) at a certain price really wants \"pump\". This can be said as a drastic price increase.</p>\n<p>Pump aims to force the price of a coin to rise unexpectedly. This serves to create a panic. Of course, panic to buy.</p>\n<p>This (pump) is not always tied to a group. Someone can create a panic about buying in an exchange. Of course, with sufficient capital.</p>\n<p>This might be called a market maker or a market user too. Because indeed, the ultimate goal is to control the market together.</p>\n<p>In this case \"pumper\" is the term for someone who raises the price, will buy the coin at a high price, for example current steem price, 0.00007206 BTC, then the pumper will force the purchase at 0.00007800 BTC or at a price that is not far from that number.</p>\n<p>If you buy on the last trade one by one (0,00007207, 0,00007210, 0,00007300) this is called a single order. Not pump.</p>\n<p>This certainly will not be effective. And failure also creates panic to buy.</p>\n<p>Differ from pump. Because buying at the highest price. This will process several orders at once.</p>\n<p>And of course. Inevitably buy the next order too, will not give a slight difference from the top buy order.</p>\n<p>This is of course, aiming for the order to be exposed first. That is so on. And precisely this is what the pumper wants.</p>\n<p>How about a dump ??</p>\n<p>Dump, which if interpreted throws away. This is indeed worth not caring about the \"excess\" of the coin. Yep, because they are not investors.</p>\n<p>Say the pump results above produce a last trade: 0.00008300 BTC and low: 0.00007300 BTC.</p>\n<p>So, when he resells. When dumped, they sell far from the last bid.</p>\n<p>For example, he immediately sells at the number 0.00006500 BTC or 0.00006300 BTC. While clearly the last bid is 0.00007253 BTC for example.</p>\n<p>This is to cause sell panic or result in people being forced to sell cheaper.</p>\n<p>Not sell in the top buy order (bid) one by one.</p>\n<p>This is my explanation of Pump and Dump. Thanks.</p>","appDepth":2,"appParentPermlink":"f3dchrecw","appParentAuthor":"edhimuryanto","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}"
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