One thing you must understand before you read this blog post is what a "pump and dump scheme" is. If you don't know what it is, Investopedia explains it pretty well: "Pump and dump is a scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements. The perpetrators of this scheme, who already have an established position in the company's stock, sell their positions after the hype has led to a higher share price." (Source: https://www.investopedia.com/terms/p/pumpanddump.asp)
In the stock market, pump and dump schemes are illegal. They are deceptive, immoral, and cause millions of beginner traders to lose large portions of money. The fact that the government has control over the stock market allows devious schemes like pump and dump to be illegal.
The fact that cryptocurrency is decentralized has led to an infestation of "crypto pump and dump." Now I obviously agree that the pros far outweigh the cons of having decentralized cryptocurrencies, but pump and dump schemes are becoming such a problem in the crypto community.
Solution: Keep crypto decentralized and spread awareness of pump and dump schemes. If you know of any, comment them below. Also, another solution is to encourage people to do their own research on cryptocurrencies before they buy.
To wrap it up, I would like to show you some examples of severe pump-and-dumpery:
