Pump and Dump

Pump and Dump schemes refer to cryptocurrency launches in which the project’s team hypes the currency to pump up its price, sells all their holdings immediately after and disappear with they money. These were much more common in 2013, when many new cryptocurrencies were launched. As a result, the teams behind new cryptocurrencies face heightened scrutiny. The term can also be used to describe short-term strategies in which holders (even non-developers) of an existing coin hype it on forums and news sites and then cash out once the price peaks.