What is Pump & Dump?
Crypto Glossary Definition
A coordinated manipulation of the price of an asset. A whale or group of people all start buying a cryptocurrency causing the price to drastically increase very rapidly. This often causes wild speculation and others start buying it out of excitement. The original actors immediately sell everything they originally bought causing the price to come tumbling back down.
Why Pump & Dump Matters
In a pump and dump, a coordinated group buys a low-liquidity coin to drive the price up, generates hype to draw in outside buyers, then sells into that demand, leaving latecomers holding losses. Low-market-cap, low-liquidity coins with sudden unexplained price spikes are the classic warning sign.
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