7 lines
595 B
Markdown
7 lines
595 B
Markdown
# Pump and Dump Scheme
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A type of market manipulation based on [asymmetric-information](concepts/asymmetric-information.md) in which buying of an asset is coordinated by a set of insiders to temporarily artificially inflate the price and bring in more buyers which are used as exit liquidity for the insiders to "dump" their positions.
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Pump and dump schemes are illegal in most regulated markets such as public stock markets, but are rampant in crypto markets.
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Pump and dump schemes result in a net wealth transfer from the market at large to an economic [concepts/cartel](concepts/cartel.md). |