A pump and dump scheme involves artificially inflating the price of an asset, often through misleading or exaggerated claims. This is typically orchestrated by a group of individuals who promote the asset aggressively, hoping to entice more investors to buy in.Once the price has surged due to increased demand, the orchestrators sell off their holdings at the inflated prices, making significant profits. This sudden sell-off can cause the price to plummet, leaving new investors with losses as the asset’s value collapses.Such schemes exploit the lack of regulation in certain markets, making it easier for manipulators to go unnoticed. Participants should be cautious and conduct thorough research before investing, as these schemes can lead to significant financial losses. Always consider the credibility of sources and be wary of any investment that seems too good to be true.