A Pump and Dump (PND) is a trading scheme where the market trader, like a whale or even a group of traders, get together to sell a cryptocurrency abruptly after inflating its price – or “pumping” it up.
It’s common to see the “pump” happen on Twitter or Discord or Telegram.
More interested parties get involved in the pump because they believe the asset will continue to increase in price.
They don’t want to miss the move or the easy profits.
The price moves sharply up, at which point the whale or group of traders suddenly sell or “dump.”
This is called a Pump and Dump.