Pump-and-dump schemes in Web3 exploit cryptocurrency price manipulation through coordinated buying and misleading information. These schemes, characterized by four stages—pre-launch, launch, pump, and dump—leave investors with worthless tokens after orchestrators sell off their holdings for profit. The decentralized, anonymous nature of the crypto ecosystem, coupled with unregulated trading, makes it a prime target for these manipulative tactics. Users are urged to remain vigilant, avoid unsolicited investment advice, and conduct thorough research to protect themselves from fraud. It’s important to be cautious of social media ads, especially those involving deepfakes of celebrities promoting tokens. As regulators ramp up efforts to combat these scams, the risks associated with investing in crypto continue to evolve, making education and skepticism essential for investors looking to navigate this volatile landscape safely.

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