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How to identify and avoid a crypto pump-and-dump scheme?

2022.07.16 22:54

How to identify and avoid a crypto pump-and-dump scheme?
How to identify and avoid a crypto pump-and-dump scheme?

 

Educating oneself about the crypto ecosystem is crucial for investors to pursue during a bear market while awaiting a bull cycle. That being said, having a good understanding of crypto investment entails keeping an eye out for fraudulent projects that threaten to drain assets overnight, a.k.a. pump-and-dump schemes.

Pump-and-dump in crypto is an orchestrated fraud that involves misleading investors into purchasing artificially inflated tokens — typically marketed and hyped by paying celebrities and social influencers. SafeMoon token is one of the most prominent examples of an alleged pump-and-dump scheme involving A-list celebrities, including Nick Carter, Soulja Boy, Lil Yachty and YouTubers Jake Paul and Ben Phillips.

 

 

How to identify and avoid a crypto pump-and-dump scheme?

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