Hello, LBIers. Today we look into Pump and Dumps where millionaire status can be gained in seconds if you get in early enough. We all have a basic understanding of what a pump and dump is. A small group of investors will band together and invest into a shit token, normally something with low liquidity. They will then create the pump by buying vast amounts of their chosen shit coin to push the price to the moon. When the price is peaking and they stop buying, they dump all their holding to the next guy for a phat profit. We know these are very high risk where time is money and early birds reap phat profits while latecomers get wrecked. In traditionally regulated markets, pumps and dumps are illegal and if caught, you would face consequences of fines/jail time but crypto is not regulated and people can do whatever as there is no law in place to say they can.
Today im going to show you can never make money from a pump and dump group and how the game is fixed and rigged from the get-go. There are lots of scams out there and this is an easy one to fall into. It normally starts off by joining a discord/telegram "insider pump and dump" group/server that are full of like-minded folks looking to make a quick buck. You talk to those people and build relationships with them and this affects your decision making, maybe you invest more than you should just to share a snapshot and feel like Mr Bigballs of the group. Some people in these groups/servers will make a little money but most will lose a lot of money. The ones that lose just accept they were late to the party and missed the boat and they'll get it back and much more on the next pump token. They will joke and laugh about losing decent amounts of money and put it down to bad timing and say silly crap like they will just HODL the token till it moons. It really shows how deluded some folks are and how easily they accept losing money.
These insider groups/communities are the scam but essential for the pump and dump to take place, the more members the better. Some of these groups on telegram have 400-500k members, thousands of people active and ready at any moment to risk hundreds/thousands, maybe more dollars at the chance to get rich quick. Most of these groups are free but some will carry subscriptions are accept 1 off payments where members can pay for higher levels, more tips are something. The admins will arrange pump and dumps to take place every 3-5 days normally. They will make an announcement to everyone in the group to pump shit token X NOW!! and then their followers follow and proceed to pump the token.
There is never an announcement to dump, I've never seen one. Once you buy, they dont really care when you sell so it's up to you when to sell which will always be too late. The earliest investors that buy-in within seconds of the pump shit token X announcement being made and dumping within the first few minutes while the pump is taking place might make a profit. If they buy and hold it for 10+ minutes, they are very likely to lose money because they will have failed to dump.
Everyone that invests after 1 minute of the announcement is pretty much 100% going to lose money. The plan is you as someone with inside info can invest super early and dump to some idiot at a higher price in a few hours to lock in a phat profit. If your investing 1 minute after the announcement to pump is made, how can you lose 100% of the time? Here are the 4 steps most people repeat.
Discord/Telegram insiders group
Did you ever see the movie Inception? Let's Inception this.
There is an insider's group within the insider's group. There are insider groups consisting of only admins. These are the real insider groups and these are where the pumps are organized, sometimes months in advance. You could have 10 "pump and dump" insider group admins with 50k-300k members each band together to make 10-50x by ripping off their members.
Admin's insider group
These real insider groups basically create an artificial demand for the tokens they are shilling and dump into their members. Admins will never admit to knowing what token is going to be pumped next. They will make up some bullshit like, a good source tells them are some magical computer code tells them. They will always pretend and trick you into thinking you are on the frontline with them. Your only real purpose is to be the buyer for the dump. The idea of a pump and dump group/server is to exploit people's greed.
Be the admin and work with other admins to screw over your group/server members.
Now you know how these pump and dump group scams work, I hope the next time you are tempted to join one, you'll think twice knowing that you cant win.
Did you already know that this is how these insider groups worked? or have you ever lost money to one of these, please share below in the comments?
Thank you for taking the time to read through today post, I hope you were able to learn and take away something from it.
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Ballpark LEO price per CL token = 2.37
Ballpark HIVE price per CL token = 1.41
Never dropped under 50% APY and pays out LEO every Friday
