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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

Market capitalization (market cap)
In Crypto, market cap is measured by multiplication of the circulating supply of tokens or currency and its current price
Hash
A hash function is an output code (unique and alphanumeric) that we obtain from an input string,
Futures
An agreement between two counterparties that obligates them to transact in the future based on the contract terms set.
Decentralized Autonomous Organization (DAO)
Open source and decentralized systems that do not require centralized operators or controllers.
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