Do pump-and-dump crypto groups work?

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Pump-and-dump crypto groups may be able to artificially inflate the value of a cryptocurrency, but they are risky and may result in financial losses. They are also generally considered to be unethical and may be illegal.

Are you interested in trading cryptocurrencies and looking for ways to make quick profits? If so, you may have come across the concept of pump-and-dump crypto groups. These groups, which are often advertised online as a way to make money through cryptocurrency trading, have garnered a lot of attention in recent years. But do they really work, and is it a good idea to join one?

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Do pump-and-dump crypto groups really help to make money?

In this article, the experts at TU will be examining the ins and outs of pump-and-dump groups and exploring the potential risks and rewards of participating in this type of activity. We'll also be answering some common questions about pump-and-dump groups, including whether or not they are legitimate, where to find them, and how to avoid scams. By the end of this post, you should have a clearer understanding of the pros and cons of pump-and-dump crypto groups and be able to make an informed decision about whether or not they are suitable for you.

Are crypto pump groups legit?

According to experts, cryptocurrency pump-and-dump groups are not legitimate and are generally considered to be illegal. The goal of a pump-and-dump group is to generate quick profits for the group members by selling their cryptocurrency holdings at a higher price after the price has been artificially inflated. However, these schemes are often fraudulent and can harm unsuspecting investors who may buy into the hype and end up purchasing the cryptocurrency at an artificially high price, only to see the price crash shortly after.

To minimize the risk of falling victim to a pump-and-dump scheme or other fraudulent activity, it is essential to do your own research and carefully evaluate the potential risks and rewards of any investment before committing to any funds. By following this basic principle and being cautious and diligent in your investment decisions, you can confidently navigate the cryptocurrency market and potentially achieve success.

Where can I find a pump-and-dump crypto?

Pump-and-dump crypto groups on messaging platforms like Telegram and Discord often use a specific structure to communicate information and coordinate their actions. These groups typically have several sections, each with its own purpose.

1. The "Info and How-To" sections are like electronic bulletin boards, with individual rooms containing information such as group rules, news, and frequently asked questions in the "Info" section, and guides to the crypto industry or best practices for participating in pump-and-dump schemes in the "How-To" section.

2. The "Signal" section is only accessible to administrators, who use it to post updates about upcoming pump-and-dump operations in the "Pump Signal" room and share trading tips in the "Trading Signal" room.

3. The "Invite" section is home to the group's bots, which users can interact with to request invite links or check how many people have joined the group through their own links.

4. Finally, the "Discussion" section allows group members to engage in free-form conversation in rooms organized by theme.

Top pump-and-dump crypto groups

The experts at TU have identified the following five groups to be highly active in pump-and-dump crypto schemes globally:

Sharks in Pump

Sharks in Pump is one of the largest crypto-related groups in Telegram with over 57,000 subscribers. They provide weekly Binance and Huobi pump signals. Some signals are free, but members of a paid VIP group get up to 5-10 signals with a high success rate.

Mega Pump Group

Mega Pump Group is a large group on Telegram with over 50,000 subscribers that coordinates pumps on the Binance exchange. The group provides a lot of information about trading for free and has a support forum for members to ask questions and exchange ideas.

Big Pump Signal

One of the biggest pump-and-dump communities is Big Pump Signal, which has over 70,000 Telegram users and up to 200,000 Discord users. The group coordinates pumps on Binance and has an affiliate program that gives preferred access to information about upcoming pumps to members who have referred others to the group.

Big Pump Group

Big Pump Group coordinates pumps on Binance.com and Kucoin.com. In addition, it has a similar affiliate program that gives preferred access to information about upcoming pumps to members who have referred others to the group. The group has over 30,000 members and is growing.

CryptoWolf Group

CryptoWolf Group is a group that focuses on coordinating pumps of low-cap coins, which are coins with lower market capitalization and therefore potentially more vulnerable to price fluctuations. In addition, the group uses technical analysis indicators to identify opportunities for profit from crypto trading.

WolFX Signals

WolFX Signals is a group that has gained recognition in the cryptocurrency trading industry for its supposedly high success rate of 90-95%. It offers access to profitable pump-and-dump opportunities on popular exchanges, and members can choose between a free group and a VIP group that requires a monthly subscription fee. The free group provides three to four signals per week, while VIP members receive up to 25 signals per week.

Crypto pump-and-dump: how to avoid scams?

After carefully analyzing numerous pump-and-dump schemes, the experts at TU have come up with the following recommendations on avoiding such scams:

1. Do your own research: Before following any pump-and-dump group, it's important to thoroughly research the coin or token being promoted. Look at the team behind it, the technology it's based on, and its overall potential.

2. Don't trust promises of quick profits: Pump-and-dump schemes rely on convincing people to buy into a coin or token with the promise of quick profits. Be wary of anyone who promises huge returns in a short amount of time, as this is typically unrealistic.

3. Avoid anonymous or unverified sources: It's important to only work with reputable and transparent sources when it comes to pump-and-dump schemes. Avoid anonymous or unverified sources, as they are more likely to be scammers.

4. Use caution when sharing personal information: Pump-and-dump groups may ask for personal information such as your email address or bank account information. Be sure to use caution when sharing personal information, and consider using a separate email address specifically for pump-and-dump group communications.

5. Only invest what you can afford to lose: Finally, it's important to remember that pump-and-dump schemes are high-risk investments. Don't invest more than you can afford to lose, and consider diversifying your portfolio to mitigate risk.

How to Avoid Crypto Pump and Dump Manipulation – Top 6 tips

Risks of participating in pump-and-dump schemes include:

1. Losing money: It's common for the price of a pumped coin or token to crash shortly after the pump, leading to significant losses for those who bought in.

2. Legal consequences: Pump-and-dump schemes are illegal in many countries, and participating in them can result in legal consequences.

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FAQ

Are crypto pump-and-dumps profitable?

Crypto pump-and-dumps can be profitable for those who are able to successfully manipulate the market and sell their cryptocurrency at a higher price after artificially inflating its value. However, pump-and-dumps are generally considered unethical and can be illegal, as they involve manipulating the market and tricking other investors into buying a cryptocurrency at an artificially inflated price. As such, they are considered to be high-risk investment strategies and may not be profitable in the long term.

What is the most profitable crypto strategy?

There is no single "most profitable" crypto strategy that is guaranteed to be successful. The profitability of a particular strategy will depend on a variety of factors, such as the current market conditions, the specific cryptocurrency being traded, and the trader's level of expertise and risk tolerance.

Is it legal to pump-and-dump crypto?

Experts suggest that participation in a pump-and-dump crypto group may be considered illegal in some jurisdictions, as it can be seen as a form of market manipulation. In the United States, for example, the Securities and Exchange Commission (SEC) has taken action against individuals and groups involved in pump-and-dump schemes. Therefore, it is important to be aware of the laws and regulations in your jurisdiction before participating in any activity that may be considered illegal.

How do you predict pump-and-dump crypto?

Some signs that may indicate that a particular cryptocurrency is being pumped and dumped include sudden and unexpected price spikes, promises of quick profits, unsolicited offers to buy or sell the cryptocurrency, and a lack of transparency about the operations and holdings of the people behind the cryptocurrency.

Team that worked on the article

Chinmay Soni
Contributor

Chinmay is a certified Investment Analyst and Portfolio Manager by the National Stock Exchange (NSE) Academy. He is currently associated with a $75 million VC fund and assists them in identifying and researching investable sectors and start-ups. He has completed his Bachelors of Business Administration from the Institute of Management, Nirma University and is currently pursuing MBA majoring in Finance from the same. He has 4 years of hands-on investment experience in a variety of asset classes and his professional qualifications include being a CFA Level 2 candidate and NSE Certified Market Professional Level 2.

He finds writing as a way to express his thoughts and share his knowledge with people eager to learn. He himself happens to be an avid reader of personal finance books and on top of his recommendation list are the international bestsellers ‘The Psychology of Money’ and ‘Think and Grow Rich’

He has this one strong belief as his motto: Life is what you make of it.

Dr. BJ Johnson
Dr. BJ Johnson
Developmental English Editor

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.

Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.