BTC value is on cloud nine these days. This is making investment in this digital crypto asset difficult for many. This is why people are now looking for alternative decentralized digital currencies for investment. The count of such assets is shooting up on daily basis.
This is encouraging people to show some interest in new coins to invest in. This is actually happening. People in many parts of the world are coming cryptocurrency enthusiasts. This is causing Pump and Dump Scam in this domain of finance.
- What is pump and dump scam In cryptocurrency?
- How does this form of finance is executed in the domain of decentralized finance?
This is something every cryptocurrency enthusiast looking for a new coin to invest in must know about.
What is Pump And Dump Scam in Cryptocurrency?
The history of this form of scam is associated with financial frauds in the domain of traditional centralized stock market. A group of stock market investors is created. This group of investors includes outside investors.
- These outside investors increase the price of stocks through promises of massive amount of money.
- The potential of fake news and stories is leveraged to execute this kind of scam.
- Even the stardom of celebrities is also put to use for executing this kind of financial scandal.
- The advent of fintech and growth of digital marketing technology is also utilized for this.
- You are sent an email, SMS or messages on social media platforms. Their focus remains on convincing you that some cryptocurrency is likely to yield massive return.
- Once you show your interest and take some action according to them or the messages you receive, hacker wins the game.
You are left with no option but to pull your hair in frustration.
Coming to the point, you need to be wise in this domain or finance while looking for a new coin to invest in. Just do not reply to any such message on any platform. Remember, investment in any domain of finance is subject to market risk. Means, risk is always there.
Therefore, be wise and be careful while planning to make the most of BTC value going up.
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