A pump group is a group of individuals who pool their resources to artificially inflate the price of a specific cryptocurrency. The members of the group coordinate to buy large amounts of the cryptocurrency simultaneously in order to create a surge in demand, driving up the price.
Once the price has increased to a certain level, the group sells off their holdings at a profit, causing the price to drop as other investors begin to sell off their holdings as well. This often leads to significant losses for those who are not part of the pump group and are left holding the cryptocurrency as it quickly loses value.
Pump groups are generally seen as unethical and manipulative, as they take advantage of unsuspecting investors who may not be aware of the coordinated efforts to artificially inflate the price. Regulatory bodies in the cryptocurrency space have taken steps to crack down on pump groups in order to protect investors and maintain the integrity of the market.
