As of today, October 10, 2025, at 08:17:49, the world of cryptocurrencies continues to evolve. Among the various phenomena observed in this market, “pump and dump” schemes remain a significant concern.
Table of contents
Understanding Pump and Dump
A pump and dump scheme involves artificially inflating the price of a cryptocurrency through misleading positive statements, often based on false and exaggerated claims. Once the price is high enough, the organizers sell their holdings, resulting in a rapid price decline and losses for other investors.
Key Differences: Pump and Dump vs. Rug Pull
While both involve deception, they differ. A “rug pull” is essentially a pump and dump executed by the token’s founding team, destroying the project’s credibility. Pump and dumps, however, can be initiated by anyone and can occur repeatedly for a single token, involving hyping a valueless asset to profit from others’ naivety.
Detecting and Avoiding Pump and Dumps
The abstract highlights the importance of fraud detection in cryptocurrencies, especially pump and dump schemes.
Pump and dump schemes pose a risk in the cryptocurrency market. Understanding their mechanisms and differences from other scams like rug pulls is crucial for investors. Further research and development of detection methods are vital to protect participants in this dynamic space.
