Avoid at no cost. That’s what I would advice to anyone. Here is why.
Pump & dump groups can be found on telegram or discord (or any other app/websites). They will schedule at a very precise time, a trade signals for all their members, in order to make a huge pump. When the signal is released, they also say at what price to buy and what is the objective for selling. Most of the time, they say you can earn 100% or even 500% within a minute if you manage to buy and sell at the right price.
Sounds attractive ? Indeed, except that it works only for the owners, some of their best affiliates. And they earn on the back of all the others (well, probably you!).
Here is an analysis, on the hitbtx exchange platform.
The screenshot above is the result of a pump & dump signal. At 23:00 precisely, the group got the trade signal. Buy at the current price 0.000390, and sell at 0.000950. Great.
Look at the graph, 10 min before, they owners obviously bought at this price, and already had the time to set their sell order. When the signal is sent, price is alread at 0.0005, and you have absolutely 0 chance to get it at that price. Never use a buy at market price order, or you might buy at 0.001. The time to go on the search box, filter the currency, put the sell order, the price will already be at 0.006. It is going really fast, it’s a matter of seconds.
And when you will realise that you will lose money, you will try to dump, but it’s too late. The wall will never be reached, and the time to set the sell order, it will be twice as low as you expected.
There is only a few way to earn with this scam groups: be the owner, be some of the top affiliates to get the signals before the others (even 5 seconds before can be more than enough), or… use a script (use the API, place a buy / sell order within 5 seconds, which is impossible to do manually). Oh, of course, the best way to earn is to stay away from this 🙂
Here is another example:
You can see a rebounce on this one. It will happen often, and it could be a good way to get back your money if ever you didn’t panic on the first wave.
And the last thing I noticed: they said that the trade will use ETH (at around 22:00, one hour before). I noticed a little pump on this one, many people took some ETH during an hour, and the owners probably bought and sold at the right time. No little profit.
Be warned! It seems attractive, but you will only manage to lose money, and if you earn, it’s as if you steal money from the others.