What is a pump and dump scheme? How to identify it?

[Good-Person]

The business world is growing. New companies are creating different kinds of commodities. This is where the pump and dump scam becomes very common. This scam involves exaggerating the price of a commodity that might be worthless. This involves creating a hype and luring investors. After the hype ends, every thing is gone. So, how to avoid such kind of scams?

 

[Kane]

People who have a lot of money, generally referred to as whales, buy stocks. When they start buying, demand will be created and the price will start going up. Afte the price reaches very high level, these people start selling their assets, when they are selling, there will be a lot of supply, nd when there is supply price will go do. That;s how they pump anmd dump.