The Rise of Pump & Dump in Crypto
Raiden Network Token($RDN) Pumped & Dumped at Precisely 24 April - 21:00GMT
A quick recap, whats Pump & Dump?
A pump and dump scheme is a type of securities fraud that involves the artificial inflation (“pump”) of the price of a security(Stock, Crypto, etc) through false, misleading, or exaggerated statements regarding the security’s price. The fraudster can profit from the price inflation by quickly selling the securities at a high price (“dump”).
At the same time, the new owner of the shares will likely lose a substantial part of their capital because the security’s price will quickly fall. The pump and dump scheme is considered an illegal activity. - Source
Raiden Network Token(CRYPTO:RND) with a total supply of around 51M tokens was pumped by a telegram group with around 450k members(both in telegram & Discord channel), as we reported previously the group pumped Viacoin(CRYPTO:VIA).
The Manipulation in small caps crypto is gaining traction after many allegedly scam organizations started to suck venerable retail investors in the get rich quick scheme.
Wondering how badly this might end for the organizers of the scheme well, the pump and dump is the exact scheme that put the ‘The Wolf of Wall Street’ Jordan Belfort in prison.
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