Pump and Dump (PND)

Pump and Dump (PND) is a form of market manipulation in which a group of investors artificially inflate the price of a particular asset through false or misleading information, and then quickly sell their shares at a profit once the price reaches a certain level.

In a PND scheme, the perpetrators often promote a particular asset through various means such as social media, chat rooms, or email lists, and encourage other investors to buy into the asset. As more investors buy into the asset, the price increases, and the perpetrators sell their shares at a profit.

Once the perpetrators sell their shares, the price of the asset often plummets, leaving other investors who bought in at the inflated price with losses. This type of market manipulation is illegal and can result in significant financial losses for unsuspecting investors.

Pump and dump schemes are particularly prevalent in the world of cryptocurrency, where markets can be highly volatile and information can spread quickly through social media and online forums. Investors should be cautious of any investment opportunity that seems too good to be true, and should always do their own research and seek advice from trusted sources before making investment decisions.

In summary, a Pump and Dump (PND) scheme is a form of market manipulation in which investors artificially inflate the price of an asset through false or misleading information and then quickly sell their shares at a profit, leaving other investors with significant losses. It is important for investors to be cautious of investment opportunities that seem too good to be true and to always do their own research before making investment decisions.