IEO, Fundamental Valuation, Pump and dump
Title: “Crypto Meccas for manipulators: identification of pumping and landfill tactics in cryptocurrency emissions”
While the cryptocurrency market continues to grow and evolve, the new actors emerge with innovative products and strategies. However, not all cryptocurrencies are created equal when it comes to their manipulation potential from scammers and market manipulators known as “pump and unloading” operators.
What is a pump and landfill scheme?
A pumping and landfill scheme involves artificially inflating the price of a cryptocurrency through a series of false or misleading declarations. The goal is to create an increase in demand, which increases the price, just to sell tokens to a swollen rate before becoming useless. This can be done by creating a false clamor around a token, spreading false information and using social media platforms to promote it.
Fundamental evaluation: a key indicator of manipulation
While the pumping and landfill schemes are designed to artificially inflate prices, the fundamental evaluation is essential to understand the true value of a cryptocurrency. The fundamental evaluation takes into account various factors such as market capitalization, the volume of negotiation, demand and demand and profitability of the project.
In IEO (initial exchange offer) and other token sales, the fundamental evaluation can be particularly crucial. The Ioes are often launched by reliable companies or projects with established teams, which raises concerns about the legitimacy of the sale. If you are thinking of investing in an IEO, do your searches to make sure that the company has a solid company plan, a strong team and realistic expectations.
Tactics of pump and landfill: identification of red flags
To avoid falling victim to pumping and landing the patterns, it is essential to be aware of the red flags. Here are some warning signals:
* Excessively optimistic marketing materials : if the sales team pushes you to invest too quickly or promises unrealistic returns, it could be a sign of a scam.
* Lack of transparency
: If the project behind the token has an unclear or changeable company plan, it could indicate manipulation.
* not registered tokens
: if the sale does not have a correct regulatory supervision, it could be a sign that the project is not legitimate.
Protection yourself: a guide for ieo investing
If you are thinking of investing in an IEO, follow these steps:
- SEARCH THE COMPANY AND THE TOKEN : Look at the background, the team and the financials of the project.
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- Be cautious of emotional investments : don’t invest more than you can allow yourself to lose.
- Diversifies your portfolio : spread investments on several activities to minimize risk.
As the cryptocurrency markets continue to evolve, it is essential to remain vigilant and aware of the manipulation potential. By understanding the patterns of pumps and landfills and fundamental evaluation, you can make informed investment decisions and protect you from these types of scams.
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