What is Dump?
Let's find out Dump meaning, definition in crypto, what is Dump, and all other detailed facts.
A dump is a process in which a massive amount of cryptocurrency is sold off in fast succession, and in some occurrences, these sell-offs will influence the decrease of the particular asset. This is usually done by a whale.
An actual dump can also be associated with the quick disposal of consumers' own cryptocurrency assets in order to benefit quickly. Furthermore, the phrase is frequently associated with a pump-and-dump method. This method is always related to deceptive conduct and an effort to control the price of a coin artificially.
For instance, a popular illustration of a dump and the impact it may have occurred in December 2017. Charlie Lee, the inventor of Litecoin, sold a significant quantity of LTC citing fears that it constituted a conflict of interest.
Initially, the markets appeared unconcerned with the situation. Nonetheless, LTC plummeted down a red line and lost over 50% of its value over the span of a few days. As a result, it took several weeks to regain the lost funds.
Additionally, a 2018 research looked at the incidence of pump-and-dump strategies in the cryptocurrency market. Over the course of six months, investigators observed two prominent group-messaging sites used by cryptocurrency enthusiasts and discovered nearly 3,400 such scams.