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
Token Generation Event (TGE)
An event in which new tokens (ussually on a smart contract platform) are created and distributed to the public.
Hashrate
Total processing power of a blockchain or what is the same, are the amount of hash values that can be made in a period of time.
Futures
An agreement between two counterparties that obligates them to transact in the future based on the contract terms set.
Zero Knowledge Proof
Cryptographic proof for 2 parties to verify a value without revealing what the value is.
Interested to stay up-to-date with cryptocurrencies?
Get the latest crypto news, updates, and reports by subscribing to our free newsletter.
Or check it out in the app stores
