Coin pump can be seen as the illegal manipulation of a cryptocurrency’s price by increasing the buy volume so as to increase the price. This is done most times to drive FOMO (Fear of Missing Out) and attract more people into buying the coin. When investors see that the price of a particular coin is rising, they tend to ape in and buy more of the coins. As more persons ape in, the price further increases and at a point, whoever instigated the pump sells off thereby dumping the coin price. I’ll be sharing my personal experience about coin pumps and why you should avoid them.
CHECK OUT: HOW I STARTED MY CRYPTO JOURNEY
MY FIRST COIN PUMP
I came across a group known as Kucoin Pumps on telegram on a particular day. Not knowing what it was all about, I decided to join the ride. I told a friend of mine but he advised me against it by sharing his personal experience with me. I didn’t listen to him because I kept on thinking about all the quick money I could make with them. A pump was scheduled one week from the time I joined. I was already getting excited, I readied some USDT in my Kucoin trading account in anticipation to make some quick money. The day finally came and by 5pm UTC, the exact coin to be pumped was stated and everyone started buying. I was a little bit late to buy but at the end I made a profit of around $200. I was excited and thought that the next time would be better. If I could make $200 on first trial, I would possibly make $1,000 or more subsequently. I was super excited and waited in anticipation for the next coin pump.
MY SECOND COIN PUMP
About two weeks after my first successful coin pump, another one was announced and I began to ready myself again. I got about $500 ready to join the pump. I was sure of making around $3,000 profit this time around. I waited for the d-day which finally came. This time around, I got about two of my friends to join me and we were going to party after the pump. We were all ready with hands on deck to jump in the moment the particular coin was stated. Finally, at 5pm UTC again, the coin was stated and we all jumped in. I bought for around $500 and before my very eyes, the price began to dip. I was scared and had to panic sell before the dip gets dipper. I and my both friends lost that day and we agreed to try one more time.
CHECK OUT: HOW TO GET STARTED WITH CRYPTOCURRENCIES
MY THIRD AND LAST PUMP
After my last experience, I was reluctant to try again but I felt I needed to recover what I had lost. I made up my mind to try once more but I was sure this would be the last. A day to the coin pump, I set aside about $500 again ready to dive in once more. I felt optimistic about this and even prayed about it. On the d-day, I jumped in and bought the stated coin. Again, I bought late and it began to dip. I felt like crying and to reduce my losses, I panic sold once again. I lost again and made up my mind never to engage in coin pumps ever again.
FINAL THOUGHTS
After these series of experiences, I decided never to take part in any coin pump again. In total, I lost around $500 and I was really pained because I was still trying to grow my portfolio. Buying good tokens like Fantom, Matic or even Doge would have been a better investment at that time.
In summary, I would advice anyone reading this to avoid coin pumps as they never end well. It is a pure act of greed and never ends in your favor. It only favors the organizers who buy at a very low price before announcing the name of the coin to the public. Learn to buy cryptocurrencies with good use cases and HODL if you want to get rich in crypto.
