Pump and Dump

A "pump and dump" is a type of scam in the financial markets, especially with stocks or cryptocurrencies. It involves artificially inflating the price of an asset through false or misleading positive statements (the "pump"). Once the price rises due to increased buying interest, the scammer sells off their holdings at the high (the "dump"), causing the price to plummet. This leaves new investors with losses, while the scammer profits. It’s illegal because it manipulates markets and misleads investors, undermining fair trading principles.