Pump and Dump (PND)

A Pump and Dump (PND) is a coordinated trading scheme where the market trader, like a whale or even a group of traders, get together to sell a cryptocurrency abruptly after inflating its price – or “pumping” it up.

It’s common to see the “pump” happen on Twitter or Discord or Telegram.

More interested parties get involved in the pump because they believe the asset will continue to increase in price.

They don’t want to miss the move or the easy profits.

The price moves sharply up, at which point the whale or group of traders suddenly sell or “dump.”

This is called a Pump and Dump.

Related Terms

Pump

The price of a digital asset increases, often at a faster pace or in larger moves than normal. Actors, celebrities, social media influencers, professional athletes, and tweets from Elon Musk have all been involved in pumping the crypto market.

Dump

When a lot of selling of a cryptocurrency takes place all at once. This can happen across a single cryptocurrency, an entire sector like DeFi, Gaming, or Metaverse, with an entire ecosystem like Ethereum, or with all cryptocurrencies simultaneously. The dump usually causes sharp spikes down in price, often causing more investors and traders to sell off, reinforcing the selling pressure.

Fear Of Missing Out (FOMO)

an acronym for “Fear Of Missing Out”, describing an overwhelming emotion of anxiety felt by crypto investors and traders when they expect a digital asset’s value to increase.

Whale

A currency trader or large investor with sizeable holdings of a particular cryptocurrency, who often also has a significant amount of capital invested in the cryptocurrency market as a whole and elsewhere. Whales can be individuals, single businesses, cryptocurrency exchanges, or even institutions.

Desktop Wallet

A common type of crypto wallet used to securely store and manage your private keys on a computer hard drive. They’re considered more secure than web-based wallets, since you can only access them from wherever your computer is located, and again, you control your private keys.