indodax indodax academy glossary poster web pump and dump e1579148992427
Pump and dump is an action that is often done by traders with large capital to influence the price of a digital asset. Pump refers to the act of buying digital assets in large quantities so the price will rise. Other traders will panic and take part in buying these digital assets so prices rise. When prices reach the top, traders who do pump and dump will sell all of their digital assets (dump) so that prices fall.