OP, I was reading your threads and you provide exceptional value and methods. I love them and will try the latest one myself. Crypto and web3 is my domain so I'll try to reciprocate and provide as much value as I can to your question. Let's start.
I've been active in the crypto degen space on TG and Discord for more than a year now ( I develop and market ICOs and signals on TG).
I have participated and made people participate in pumps and dumps. There are two types of groups in there.
1. Legit PnDs
2. Scam PnDs
Here's the summary of what happens in both of them,
1. Legit PnDs
- Owner side activity
- Identify an exchange to carry out PND. These are exchanges that have little trading volume. i.e Hotbit. These exchanges don't have much liquidity therefore you can only buy and sell on limit orders and not on market orders ( I hope you know what this means )
- Identify a coin on the exchange which they start accumulating over time. Usually, it's within days. They accumulate it in cents.
- Push the coin to their audience on the pump time.
- Audience Side Activity
- The audience or the members of the group get the coin's name.
- They go on the exchange to buy it.
- They have to place limit orders to buy based on the lowest amount in the order book. ( Bid and Ask prices)
- Everyone just buys and the sell orders are filled.
- Summary
- The owners of the group have already accumulated and now have a sell order like 30x 40x above the price the token initially pumped from.
I,e I bought 5000 tokens @ $0.1 on average. I placed a limit sell order for 5000 tokens at $3 price.
- Between .1 to 3, Let's say there are only 10 orders that are selling for $ .2 .3 .5 .9 1 1.2 1.6 1.9 2.5 and the total tokens for sale are like 500. So we could say, that on average the 500 tokens are worth 300$ in buying volume.
- Now when everyone's buying, they quickly take the price to $3 COMPLETELY WIPING out the orders in between. At 3, there is a BIG SELL ORDER which I placed. Mathematically $15000 is to be filled. THIS IS OUR PUMP.
- The price WILL not go higher until all the tokens are bought at $3.
- Let's say all my orders got fulfilled. And I have 15000 USDT. Good for me.
- At this point in time, the buying pressure stops, and sell pressure starts as everyone who bought is now selling because they have to make money. They will NEVER as there's NO DEMAND at $3.
- This effectively drives the price down and the ones that bought higher get stuck forever. This is our DUMP.
- Then the owners just post "WOHOOO 3000% Pump let's go". Where in reality. It could have been done with a $300 buying volume.
- Aftermath: Only the owners and a select few with good internet connections that managed to buy early make some money.
2. Scam PnDs
This is worse than the first one.
- Create a discord account and fill it up with fake members to showcase the "Strength" of buyers whenever they pump anything.
- Create a FAKE exchange with real trading charts and whatnot. This is your main asset as you'll be pumping a coin out of nowhere in it and showing a wick whenever anyone wants to see it. Since it's just code, you can create a candle of 1 minute with a 30x price, and the next candle just back to where it was trading.
- This exchange looks real and lets you trade with proper pricing and everything. But it's fake. You can send money in it but can NEVER get it out from the exchange.
- Market yourself by saying that we give the coin name 3 minutes before so ONLY OUR GROUP members can buy first and then we shill to others and bla bla.
- Put people in discord the give fake hype and everything.
- Make money off greedy and dumb people by making them believe it and transfer money to your BTC, ETH, or LTC wallets.
VERY SIMPLE.
The only way to make money in PnDs is to run the whole show. That's it.