How pump & dump group work (my theory)

[PinguSpy]

1. Single person create various type of pump & dump group.
2. Each group will have 5,000 - 10,000 (sheep).
3. The admin buy specific coin at $1.00 (example).
4. The admin ask his clueless "sheep" to buy/pump certain coin and sell/dump it at certain level $10 (example).
5. The admin set sell order at $9.
6. The admin make profits.
7. Sheep get burned.

 

[Bel1616]

That's what promoters do

 

[TheAlmightyDada]

This is almost certainly how these things work. Nice work OP.

Someone posted a ref link to one here earlier I joined to have a look and the level of underhanded ness is unreal.

 

[BlueSnow]

They just pump a certain currency, currency gets hype and they sell at high price.

 

[kosuo9909]

It's not just your theory. That's how it works. And it is fair, if you are quick enough, you will make profit as well. I am fine with that, nobody is going to give me the chance to double my money in 10 minutes for free and without gaining advantage. In one of those groups the owners openly stated that on Friday there won't be prebuys /The two owners won't be participating/. It is well known.

 

[Deleted member 969102]

They don't even hide it. Most I have looked at have paid tiers/ earlier mentions (few seconds) for people who invite more people.

 

[theqavish]

Target should be getting the piece of the pie....and not the whole pie.

 

[eaglesWTF]

i guess they not tells them to "dump" it - they just buys some coin at low, promotes it for huge sheep army who believes in that guy as a leader authority and that coin gets pumped, admin takes cash in some moment but in some cases hype goes further and sheeps takes out money also ant not gets burned. True suppoman story

 

[MR.I]

i totally agree with you OP !
people just follow along but you you can't do anything about it

 

[BlueDev]

These groups are dangerous, it's not just these groups, also youtubers such as Jr Business, he told people he was doubling his money on paccoins and sure enough, greed kicked in, his gullible audience bought the hype, the coin went wild and a lot of people got burned, just talked to someone today that lost $10,000 on that coin now that can't even sell for 1 10th of a penny, be careful out there guys, and please do not join these groups, and do not promote them either, the loser will be you.

 

[waterworks]

Not sure why you put 'theory' on your subject line. That's exactly how they work. lol.

Go in any of them. You'll find tier levels based on invites or pay and 1000's of sheeple.

And admin adamantly deny buying before the group and selling before the target. But you and I both know that's completely BS. They buy way before sending the signal, and they also set a limit sell below intended target to ensure they get out in time.

It's brilliant really if you're at the top. No easier way to make money and it's completely legal.

 

[lokiys]

Seems pretty right theory

 

[Bel1616]

promoters do this with penny stocks, not all the time but most of them

 

[GordonGladwyn]

yep, i've seen similar things.

 

[escobart]

“Reselling”

 

[manolo12399]

yes is how it work, but is not just 1 buy, accumulate small buy orders, some sell too if price get higher...but with some study and time, you can see what coins will get pumped...the sell yes, they sell on the spike,they already have sell orders in place....otherwise who would sell at that price, to the sheeps? If not who engineered all?

 

[DunDidIt2X]

If you are in the US, I would BEWARE!!!! https://www.cnbc.com/2017/12/21/sec-crackdown-on-cryptocurrencies-is-about-to-get-serious-ex-chairman.html

They are about to crack down on insider trading (yes, this would qualify).

"Pitt identified many cryptocurrency offerings as "offerings of securities," which therefore fit under the SEC's legal authority. For him, that means insider trading is a very real possibility.

"There absolutely can be insider trading," Pitt added. "When people have advanced knowledge of the offerings of these interests and take advantage of the offering long before it occurs.""

In one of those groups the owners openly stated that on Friday there won't be prebuys /The two owners won't be participating/. It is well known.

Yeah right. Hey BTW I got some beach front property Im selling for super cheap in Arizona. You interested?

 

[waterworks]

If you are in the US, I would BEWARE!!!! https://www.cnbc.com/2017/12/21/sec...cies-is-about-to-get-serious-ex-chairman.html

Article came out Dec 21. That's old news in the crypto world.

 

[DunDidIt2X]

Article came out Dec 21. That's old news in the crypto world.

Apparently some people dont understand it.

 

[waterworks]

Apparently some people dont understand it.

True, but I'd say the four exclamations made it sound like this was urgent breaking news every crypto person should read immediately. A bit heavy on the Redcoats ride through town wouldn't you say?