#btc In short: the last ones in get wrecked.

This is referred to as a 'pump and dump' for trash coins, and here's how it works:

### 1. Who's pulling it up

It's usually a small group holding a lot of coins at rock-bottom prices. They use cash, bots, and community hype to pump the price up +6%, +20%, +100% in just a few minutes. The goal is to create FOMO.

### 2. Who gets wrecked when the price is pumped

- Group 1 - FOMOing at the peak: They see a strong green candlestick and, fearing they’ll miss the trade, they chase the price higher. At this point, the pumpers already have sell orders set above.

- Group 2 - Late stop-loss: After buying, the price crashes 30-50% in 5 minutes, leading to panic selling. The later you sell, the heavier the losses.

- Group 3 - Holding onto hope for a 'back to shore': Some junk coins after a dump never return to their old peaks. Holding for a year still results in a 90% loss.

### 3. Who wins

- The initial wave group sold at the peak.

- The exchange charges a fee every time you trade.

Signs to recognize:

There’s a sudden spike in trading volume with no real news. The order book has a massive sell cluster above, like in the S/USDT earlier. The Telegram/Discord community is spamming 'buy now', 'to the moon'.

A junk coin increasing for a long time doesn't mean it's safe. The longer it drags on, the harder it crashes, because the last person holding the bag bears all the burden.

Do you want me to show you how to check if a coin has pump and dump signals?