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
ROI
Short for “Return on Investment”, the ratio between the net profit and cost of investing.
Dump
A common term used to describe downward market movement, or to describe the action of selling an individuals holdings.
Oracles
In the context of crypto, oracles refers to services which verify real-world and provide data to blockchains/smart contracts.
Atomic SWAP
Atomic Swap refers to the exchange of cryptocurrencies that operate in different block chains without intermediaries.
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.