Pump and Dump refers to a form of financial manipulation where investors in a stock, crypto or any other financial security, try to temporarily increase its price in order to sell their holdings at a favorable price.
Crypto manipulators usually bring about a sharp spike in the price of the targeted coin by spreading exaggerated news that is favorable to the coin. It is usually targeted at small and mid-cap coins which have low liquidity, and so can be influenced more easily by manipulators. Even large-cap coins, however, can be manipulated temporarily by bigger investors wanting to make a quick buck. Pump and dump results in Big profits to everyone involved but losses to outsiders.
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