Pump and dump in crypto is a manipulation scheme. A group promotes a token heavily, creates excitement, and then sells into the rising price while later buyers are left with losses.
Why crypto is vulnerable
Small tokens can have low liquidity, thin order books, and social media-driven demand. That makes it easier for coordinated hype to move the price sharply for a short time.
Common signs
Watch for sudden anonymous promotion, promises of guaranteed gains, countdown groups, low-liquidity tokens, and claims that buyers must act immediately.
A pump and dump is different from normal volatility because the price movement is driven by coordinated promotion and exit behavior, not healthy market demand.