Pump and dumps & rug pulls
Lesson 5 of 12 in our free Crypto, Hype & Finfluencers guide: a 5-minute money game with the key points below.
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Questions you'll answer
Insiders buy a token at 1p. Hype pumps it to 10p, they sell, and it drops back to 1p. Mo bought at 8p with £100. What's Mo's £100 worth now?
Who usually makes money in a pump and dump?
Quick facts
- Red flag: “Brand new token, launching in 2 hours!” — No track record at all.
- Red flag: “Anonymous dev team (for privacy).” — No one accountable if it vanishes.
- Red flag: “1000x potential,” — Wild, unrealistic promises.
- Red flag: “liquidity locked trust us bro.” — 'Trust us' is not evidence.
- Red flag: “Join the private group for presale — tell no one!” — Secret insider access is how pump and dumps start.