“Pump and dump” means artificially pushing up the price of something, usually a stock or cryptocurrency, and then selling it quickly for profit. The price is often driven up with hype, false claims, or misleading information, and then it drops after the sellers cash out.
People use this term when they talk about scam-like market behavior. In daily life, you might hear it in news stories, online investing groups, or social media posts warning others that a stock, coin, or product is being overhyped just so someone can make money from the price jump.
Meaning & Usage
The phrase is most often used in investing. A person or group “pumps” interest to make the value rise, then “dumps” their shares before the price falls. It usually has a negative meaning because other people are left with losses.
Examples
“That coin looks like a pump and dump.”
“They were accused of running a pump and dump scheme.”
Is pump and dump illegal?
Yes, in many cases it is illegal, especially when it involves fraud or false information used to manipulate prices.
Where is the term used most?
It is commonly used in stock market and crypto discussions, but people also use it more broadly for any fake hype followed by a sudden drop.
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