Defi-Gamefi Reveals How To Avoid “Pump and Dump” Crypto Schemes: Details

Defi-Gamefi.com, a website that educates people on how to earn money in the metaverse through gaming, has released a guide on how to stay safe from the “Pump and Dump” crypto scheme as a warning for new and inexperienced traders. They published the preventions in three formats i.e., podcast, video, and article.

Raul Meza, who works as a writer for Defi-Gamefi.com explained in the pump and dump video that often a fake online trading platform that either has difficulty access through legitimate channels or has limited access, is involved in such schemes. The newbies in the trading sector are often the target of these groups. They are asked for a certain amount of money for joining a program or to become a member of a ‘pool.’

As the money flows in, the malicious party buys low-priced crypto assets in great amounts and ‘pumps’ the market. This they do to induce fake inflation in the price of their trading platform

The platform will make it seem like the user has access to some confidential details or some effective trading strategy but obviously, there are all ways to trap users into their false scheme.

The fake party ‘dumps’ their holdings at a high price once the price of crypto increases, as a result, the new trader loses their money.

The article published by the website recommends some hacks to identify “pump and dump” schemes for the individuals seeking to enter the crypto space.

The author declared conducting a survey or questionnaire on a platform as the biggest red flag associated with the platform. Questionnaires are often added to fake the legitimacy of the platform. The articles also warn against the claims of assured income and profit.

Looking at the projection a party is making in the overall crypto space and the claims made by users regarding the money is another measure to check the authenticity of a platform. The article also recommends tracking the value of the trading platform and keeping a watch for the sudden price increase.

As a final piece of advice, the article urges its readers to not reveal their personal details such as email address, name, phone number, password, etc which can easily be easily linked back to them.

While any investors who get approached by a pump and dump scheme, can file a complaint with the Federal Bureau of Investigation (FBI) or the Federal Trade Commission (FTC), and report the event.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing