Pump and Dump


1 [concept]
Fraud scheme to artificially increase the price (pump) of an asset to entice others to buy it, then sell (dump) it to unsuspecting investors, leaving them with an asset that is immediately valued far lower than they bought it for.

1.1 Example

Pump and dump groups exist in many spaces, where the members of the group pick a random asset to pump and effectively play musical chairs, attempting to buy the asset quickly before the rest of the group has, and then sell it before anyone else does while the price is still being pumped.