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Pump and Dump

A coordinated scheme where a group inflates a token's price via hyped promotion and coordinated buying (pump), then sells into the inflated price (dump), leaving late buyers holding losses. Common in low-cap tokens and memecoins. Often organised in Telegram/Discord groups with paid influencer promotion. Regulators treat this as market manipulation; multiple SEC and DOJ enforcement actions have targeted crypto pump-and-dump operators.

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