Pump and Dump Schemes And How To Avoid Losing Out

Simeon Tunde https://cryptohead.io 2m 508 #pumpdump

The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.

Kim K Sued Over Pump And Dump – Expert Insight On What It Means And How To Avoid It

Following the news that Kim Kardashian, Floyd Mayweather Jr, and Paul Pierce are being sued by investors in the EthereumMax crypto-currency after an alleged Pump and Dump scheme, the experts at Crypto Head have weighed in on how to spot a scam as well as shed light on what the scheme is.

Adam Morris, co-founder of Crypto Head comments on what a ‘Pump and Dump’ scheme is and how to avoid losing out:

“With the recent news of the lawsuit against Kim Kardashian, Floyd Mayweather Jr, and Paul Pierce for their alleged ‘Pump and Dump’ scheme, it is becoming ever more important to understand exactly what a ‘Pump and Dump’ scheme is, and how you can avoid losing out on money because of such schemes.

‘In the world of cryptocurrency, pump and dump schemes are when an investor or group of investors will spread false or misleading information about their coin or one they hold a large stake in, to convince unsuspecting investors to buy into the coin skyrocketing the price of it.

Once the coin is effectively ‘pumped’, the originators of the scam will sell or ‘dump’ their coins whilst people are still buying it, making large profits but also creating substantial losses for all those defrauded.

“This, if used by celebrities and prominent figures, could generate millions in profit for them whilst simultaneously creating huge losses for everyone who bought into it.

“In this case, you have figures such as media personality Kim Kardashian, boxing legend Floyd Mayweather and basketball legend Paul Pierce, who have made false or misleading statements about EtherumMax. Combined these three celebrities have tens of millions of followers across their social media platforms.

“Unfortunately it’s up to you to be able to spot the scams, which is why we’ve revealed 5 ways you can prevent yourselves falling for these schemes:

Be aware of platforms offering huge returns, if it sounds too good to be true it most likely is!
Don’t take financial advice from celebrities such as Kim Kardashian or Floyd Mayweather. Both figures did not come into the public eye due to their expertise in finance or investing. Scammers are so successful because they use recognisable and trusted names to gain people’s trust into believing it is a good investment when in many cases these names have no association with the coin at all.
Make sure you are using an exchange platform that you trust and that doesn’t have high fees. Never send your money or cryptocurrency to a platform you don’t trust. Carry out some research to look into how reputable the platform is.
Store your cryptocurrencies in an offline wallet such as a hardware wallet to prevent yourself from being scammed. You should always think of it as “Not your keys, not your crypto”. If you don’t have custody of your cryptocurrency in your own wallet you are at risk.
Never buy or invest in anything that you aren’t 100% sure about.

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