The scheme known as "pump and dump" was invented in the stock markets. However, since such manipulations are punishable there, it is now successfully applied in the cryptocurrency market.

A pump is a planned inflation of the price of a cryptocurrency, usually through the coordinated efforts of a group of people. Their goal is to sell this coin at its peak value, after which its price collapses, and people who were not involved in the pump and bought it from manipulators suffer significant losses.

It's important to note that the demand for the coin during a pump is created artificially, and the growth of its price is a short-term phenomenon, as it turns out that the real demand is much lower. This is how a pump differs from natural growth, which can also be quite sharp and outwardly resemble a pump.

A pump has several stages:

• Selecting the asset to be pumped and gathering a group. Such a group usually has a core of permanent members - sometimes they try to attract new participants, in other cases, the composition of the groups is rarely updated to minimize the risk of information leaks. Usually, coins with relatively low capitalization are pumped, as they are easier to manipulate - it requires less funds. It's also important that the group "works" in a coordinated manner: making purchases at pre-calculated times and in established volumes.
• Accumulation. Usually, they try to conduct it as smoothly and inconspicuously as possible - it can stretch over days, weeks, or months, depending on the scale of the pump. The main goal is not to provoke premature growth of the coin and not to attract outside attention.
• Creating hype around the coin - after the accumulation is completed, it's necessary to draw attention to the asset, showing that there are prerequisites for its growth. This way, when outsiders see the growth, they can be convinced that it didn't start for no reason.
• Selling - at a precisely chosen moment, all participants of the pump group sell their coins, after which the price collapses sharply, this is called a dump.