Pump and Dump Scheme
By CoinGecko | Updated on Aug 12, 2021
A scheme in which the development team (or short-term traders) hypes up a project without fundamental basis in order to pump up the price of the tokens temporarily and then sells their holdings immediately after launch to earn a profit. See the US SEC's investor alert on pump and dump schemes.
Related Terms
HODL
A crypto slang of saying holding the assets rather than selling it.
A crypto slang encouraging investors to hold on to their assets rather than selling it.
Initial Coin Offering (ICO)
Initial Coin Offering (ICO) is the equivalent of Initial Public Offering (IPO), where a company/cryptocurrency venture raises funds through crowd sales.
Ethereum Virtual Machine (EVM)
Ethereum Virtual Machine (EVM) is the environment in which all smart contracts are executed.
Faucet
A faucet usually represents a site or app where a user can navigate to for small rewards repeated over time.
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