• Moobythegoldensock@lemm.ee
      link
      fedilink
      arrow-up
      3
      ·
      8 months ago

      It’s an old scam classically done with penny stocks and in modern times with crypto. Scammer buys up a whole bunch of garbage investments, cold calls a bunch of inexperienced investors and gets them to buy in (the pump), the price of the investment shoots up, and the scammer sells all their shares before the price collapses (the dump.)

      It’s actually illegal, but people still get away with it.