On my last article i talked on What is Pump & Dump and how they are done, and on this article i am going to take a look on the good an bad side of the pumping and dumping in relation to the people behind the project in question and the traders behind the pump and dump process. First lets take a look on the:
Traders Side
On the trader's side its obvious that they are into this in order to make money so they are excited about the process. During the pump and dump process you will see someone turning $500 to $5000 in less than 3 minutes. This process is only done on Centralized exchanges e.g Binance Exchange, Kucoin, Crypto.com and so many CEX exchange.
The trader prepare for a coin to buy an on that day they buy in but mostly what happens is the guys who are leading the pack scan for coins that has low supply and lower prices then they buy more of it so on the day they just send a signal and the other traders jump in creating volumes an the major holders will offload in seconds and the majority will be left holding losses if they take long to close.
So if you want to participate in that process make sure you are fast enough to buy and close. Recently there was a massive pump on dump on a token called Baby Floki Billionaire as it just surged from $0.00000009 to $8 per token and traders were not able to cash out their huge gains and it was umped now they are drowning in losses.
Taking a good look at the above picture, those last 3 candles can tell you that this game is not for the faint hearted. You must be fast enough to act otherwise the Market will prey on you. You will buy what they don't need anymore and you will be forever stuck in the past. Another good example is on Squid Games, this one was a headline maker and its still making headline because it just left everyone in shock.
Project Team
The guys who had spend so much time putting a project in place will just watch their project going in the drain. Normally when the project is dumped investors will lose confidence in it an they will never have faith in it again and it will suffer the consequences. So those newly listed project you should not just jump because some might be scams or either they will just be pumped and dumped,
