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
Distributed Ledger Technology (DLT)
Describes the technology that enables distributed ledger.
Permissioned Blockchain
It is a private blockchain where the nodes must be previously authorized by a central entity.
Zero Knowledge Proof
Cryptographic proof for 2 parties to verify a value without revealing what the value is.
Unspent Transaction Output
(abbv. "UTXO") Coins that are unspent in the wallet. UTXO virtually represents the cryptocurrency one own in the wallet.
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