Pump & Dump (P&D, also translated as pump and dump) is a long-standing Market fraud also exists in traditional financial markets. In short, scammers artificially inflate the price of an asset they hold—or “hype” it—by making misleading and positive statements that are not consistent with reality, in order to later sell the asset purchased at a higher price at a higher price. Once the scammer starts selling, the losses caused by excessive selling pressure will be borne by other investors. Pumpers may be insiders of the project or other speculators in the market.

It should be noted that the price increase mentioned here is divorced from the actual supply and demand relationship in the trading market and is not caused by the increase in the intrinsic value of the underlying asset - this price surge is the result of artificial manipulation. . This type of trap is very popular among small and mid-cap projects.

The development of the Internet has provided scammers with great conveniences. They can contact and incite a large number of potential investors through various channels such as social media platforms, spam emails, and online advertisements.