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Shilling refers to the deliberate promotion of a specific cryptocurrency. It can be carried out by an influential group of people – they convince their audience that this coin is about to experience a significant price increase and has enormous potential, encouraging investments into it.
Due to shilling, the token's price may indeed rise temporarily, but then the promotional campaign ends, followed by mass sales – this happens because the goal of shilling was to inflate the coin's price for a more profitable sale. As a result, those who trusted these «analysts» and invested in the coin may suffer substantial losses.
To avoid falling for shilling, the most important thing is to carefully select your sources of information. If someone has numerous glowing reviews about various projects, this should already raise suspicion – it is highly likely that they are engaged in shilling. However, not all shillers act maliciously – some genuinely believe in the potential of the coins– they just do it too frequently.
Most often, the pump of a coin begins with shillers simply fulfilling someone's order, and later, genuinely convinced individuals join in. This is precisely how projects gain popularity that bring nothing new and lack serious fundamental value. If you notice a lot of positive information about a particular coin, it's worth thoroughly checking its sources – have they previously promoted projects that turned out to be scams? If this has happened repeatedly – the conclusions are obvious.
Being able to filter sources is extremely important, but the main defense against shilling is your own knowledge. If you learn how to independently analyze the technical aspects of a project and assess its potential, you can primarily rely on your own conclusions and consider external opinions only as supplementary – in that case, shilling won't pose a threat.
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