Pump and Dump (Crypto)
A coordinated scheme where organisers accumulate a low-cap token, artificially inflate the price through hype, then sell while latecomers buy, crashing the price.
Also known as: P&D, crypto pump group, coordinated pump
Last reviewed: 10 June 2026
Pump-and-dump schemes are well-known in traditional financial markets and are equally prevalent in cryptocurrency, particularly for small-cap tokens with low liquidity where prices can be moved significantly by modest buying pressure. Organizers accumulate a position quietly, then trigger coordinated buying through Telegram groups, Discord servers, or social media signals, creating a rapid price spike.
Random participants who join expecting to profit are often left holding tokens after the organizers sell. The price collapses within minutes or hours. Unlike in traditional markets, crypto pump-and-dump is not explicitly illegal in all jurisdictions, though it may constitute market manipulation or fraud depending on local law.
The key consumer warning signs are: sudden unexplained price spikes, Telegram channels that post rapid buy-now signals with no analysis, projects with no utility or development activity, and promotions that emphasise price action rather than technology or adoption.