Bubbles, Scams & CrashesMarket Manipulation

Pump and Dump

Hype a stock, sell it to the crowd, disappear

A coin triples in 18 seconds while a chat screams BUY. Who is selling to all those buyers, and who planned it?

You'll find out

  • Who sells at the very top
  • How often pumps happen
  • How fast the money vanishes

Why it matters

Hype can be manufactured on purpose. Knowing how a pump works shows you who profits when a crowd rushes in.

About 3 min6 interactive slides · 5 questionsLesson 132 · Zone 15

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More in this zone

  1. 127BubblesWhat a Bubble IsWhen prices float far above what things are worth
  2. 128FraudThe Ponzi ShapeOld investors are paid with new investors' money
  3. 129Crashes25 Years to Get BackThe Dow didn't reclaim its 1929 peak until 1954
  4. 130FraudRed Flags of a ScamGuaranteed, urgent, secret
  5. 131FraudSmart People Don't Get ScammedYoung adults report losing money to fraud more often than older ones
  6. 133CrowdsTulip ManiaDutch traders bid single tulip bulbs up to fantasy prices, though the crash was smaller than the legend says
  7. 134HerdingFollowing the HerdWe trust a crowd even when it's wrong
  8. 135Fraud HistoryPonzi Wasn't FirstA Boston woman ran the same scheme 40 years earlier