Beware Crypto Traders !! Pump & Dump Group on Telegram

Hey folks,

There are lots of group on Telegram which are doing pump & dump activity for a low volume coin. Following are the activities happens in these groups:

Time Announcement & Reminders Before Pump:

Coin & Exchange Announcement:

DM screenshot of Success of Pump & Dump:

They have community of thousands of people, all the newbie traders get to know about these groups by means of friends or social media platforms, they read the post there like some coin is going to pump today upto 10x, Due to greed they forget to do research the history of coin & just buy at high price and not able to sell within that short span of time in pump & dump process.

As you can see from the price chart, EMC2 got pumped for 1 minute from 2.5k to 18k which is about 9x, and in the very next minute red candle indicate fall of price back to initial value (approx).

I am not declaring these groups as scam but if you are that fast enough to know when to take an entry and get exit with huge profit then go for it otherwise stay away from these kind of telegram groups.

My observation :
After getting the name of coin, the very first thing people used to do is to place a BUY order watching the ASK price not the BID price.When people place order let say ASK price is 3k after 5 sec of coin annoucement, he will put order for 4k, it will take atleast 4 seconds(let say) to place the order, your order won't get your order processed because by the time price jump to 5k or 6k and so on, in the end newbie results in placing the order at 12k - 15k which could be the probable peak of the pump.Now for the exit, same is going to happen, resulting in sell at 10k or 8k => LOSS
Yup, I agree some people use to make profit from these pump & dump activity but by indirectly stealing some new group members money or money of the people buying it for higher price after seeing the surge in price.

How market is manipulated by these group of people or big players:
lets talk about EMC2-BTC pair on bittrex, see the ASK section, last SUM column, below is the 1st page listing 10 sell orders

Now lets see the last page, To pump the price to 18k satoshi, you will need only 53 BTC (see SUM column of the sell orders)

It means, Anyone with 53 BTC, can purchase all the EMC2 coins on bittrex for that moment of time, and sell them at the price whatever he wants to, unless the new sellers come into picture. makes sense Right.

So, For low volume coins, these group of people together manipulate the market for short span of time. Pump and Dump Scheme is very old concept. Watch the video below:

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IMO, Stay away from low volume coins or code a bot over Bittrex APIs (which most of the group admins uses to make profit out of pump & dump game). Also, its not good way to earn money, you will eventually lose money when things goes wrong in minutes.

Anyways, possible strategy to make some profit:

1. Immediately after getting the coin name, put the buy order with 10x of the current BID price. Place Sell order immediately with 2x-3x of the price you got.
2. Instead of this manual process, automate this process using some script or code a Bot. [ If you find this hard to do, just upvote to show intensity of need for it, I'll do it & share with you guys soon ] - I don't want newbies to stop trading due to these fraudulent activities.

Its upto you, how you make strategies to win the game, I believe in high volume coins technical analysis and study hard for that, I came across this kind of group on telegram by one of my friend. Beware guys, Don't put your hard earned money to gamble around.

Resteemit to spread awareness, UpVote if you find it helpful, Follow Me for more updates and cryptocurrency technical analysis.