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
Decryption
The process of decrypting data that was previously encrypted (made unreable) back to a readable form.
Whale
Someone who holds an enormous amount of cryptocurrency and has the ability to wave the market
Cold Wallet
Wallets that are offline and require physical access to certain devices (eg. hardware wallet, paper wallets)
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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