3a4ec0adce4a15e1d4dc059c98a31304e1d425cd 1500x1000 1 New crypto scam: pump and dump

New crypto scam: pump and dump

Read Time:2 Minute

– On November 10, 2021, Peter Komolafe received a direct message from an unknown sender on Instagram, inviting him to join a crypto pump group on Telegram.
– The message explained that by pumping a coin to a high value and then selling it, members of the group could make 400900% profit.
– Komolafe was intrigued and decided to join the Telegram group to, as he told Morning Brew, see whats going on there.
– What Komolafe found was a pump and dump (P&D) scheme. A P&D scheme in the cryptoworld usually involves social media influencers, or promoters working on their behalf, promoting preselected cryptocurrencies and then convincing investors to buy into them to pump up the value.
– The invitation Komolafe received pointed to the event organizer, a personal Instagram page belonging to a guy claiming to be named David.
– A quick glance at his Instagram page as shared by Komolafe in redacted screenshots shows that David is a young dude living a lavish lifestyle. Hes got a Lamborghini, takes helicopter rides, and spends huge amounts on vacations across the globe.
– Komolafe said that when he joined the Telegram group, the member count was around 15,000 people. By the time of the next pump, there were more than 18,000 people in the group.
– Davids job is to catch the attention and lure people into the group, but he isnt running it: The moderators tell investors when and how to prepare for the next pump, which by Komolafes estimate happens several times per week.
– On the pump day, the moderators started to play up the tension in the room by offering a stream of countdowns. 5 MINUTES LEFT BEFORE THE PUMP, the moderators wrote in the channel.
– Tellingly, Komolafe said, they never revealed which coin would be pumped until the very last minute.
– The logic of a pump and dump scheme is that after the moderators publish the name of the coin, all the members should buy as much as they can as fast as possible while the price is still low.
– This time the coin being pumped was called akro refinance (ARM). The faster you buy a coin, the more you can earn, Crypto Team, the moderator of the channel, explained, according to a screen recording Komolafe shared.
– Then the price of the coin would be artificially inflated within a few minutes as buyers snap it up. After that, other traders will start buying it, while we will sell it at the peak of growth. The goal is to create a buying frenzy.
– For a coin that doesnt have

3a4ec0adce4a15e1d4dc059c98a31304e1d425cd 1500x1000 1 New crypto scam: pump and dump

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