A Pump & Dump Scheme involves artificially inflating the price of a cryptocurrency through misleading or false information. This is typically executed by a group of individuals who promote a specific coin, often through social media, forums, or messaging apps. Their goal is to create excitement and attract unsuspecting investors.Once the price rises significantly due to the hype, the perpetrators sell off their holdings at this inflated price. This sudden selling pressure causes the price to plummet, often leaving other investors with substantial losses. Many individuals who bought in during the hype find themselves stuck with a worthless or significantly devalued asset.These schemes are illegal in traditional markets and are also frowned upon in the cryptocurrency space. Investors should be cautious and conduct thorough research before buying into any cryptocurrency that seems pumped up by exaggerated claims or trending discussions. Recognizing red flags can help avoid falling victim to such manipulative practices.