pump
A pump refers to a rapid, sharp increase in an asset's price, which can result from genuine market demand, speculative momentum, or coordinated manipulation.
In crypto markets, a pump describes a period of rapid and substantial price increase. Pumps can be organic, driven by genuine buying pressure from new participants entering a market, positive news, or broader adoption. They can also be deliberately manufactured through coordinated buying activity designed to attract other buyers, after which the original buyers sell their position at the elevated price, a scheme known as pump and dump. The latter is particularly common with low-liquidity tokens where a small number of actors can move the price significantly with relatively modest capital.
Pump and dump schemes typically unfold in stages: a group accumulates a token at low prices, then coordinates promotion through social media, messaging groups, or influencer endorsements to generate interest, driving the price up. Late entrants buy in expecting further gains. The original group then sells simultaneously, collapsing the price and leaving later buyers with heavy losses. These schemes are illegal in traditional securities markets but exist in a regulatory grey area for many crypto tokens, making them a persistent risk for retail participants.