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Key takeaways
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Pump-and-dump schemes in Web3 manipulate a cryptocurrency’s price through coordinated buying along with misleading information and hype to lure investors in before a mass selling of a token, leaving it almost worthless.
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Decentralized anonymity and 24/7 unregulated trading make the industry particularly vulnerable to these manipulative investment schemes.
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A pump-and-dump follows four stages, including the token prelaunch, promotional hype building at launch, price pumping through buying action and a coordinated sell-off by orchestrators…
