# Pump and Dump

> A market manipulation where insiders inflate the price of a token, then sell into the buying frenzy.

Canonical URL: https://fudfomo.co/glossary/pump-and-dump
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A pump and dump is a coordinated scheme to push the price of a small or illiquid token higher with marketing, social media, and friendly trades, then sell the insiders' holdings to the buyers attracted by the rise. The price typically collapses quickly afterwards.

Pump and dumps are illegal in regulated markets but easier to run on smaller crypto tokens, especially newly launched ones.

## Regulatory context

Pump and dump schemes are a form of market manipulation and have been prosecuted under existing securities and commodities laws.

## Related terms

- [Rug Pull](https://fudfomo.co/glossary/rug-pull): A scam where the creators of a token suddenly drain liquidity or sell their stash, leaving holders with worthless tokens.
- [Exit Scam](https://fudfomo.co/glossary/exit-scam): When the people running a project disappear with users' money.
- [Tokenomics](https://fudfomo.co/glossary/tokenomics): The economic design of a token: total supply, how it is distributed, and how it changes over time.

## See the full catalogue

What The Block! covers more than 2,000 plain-English crypto terms, delivered as embeddable hover-state tooltips for crypto exchanges. https://wtb.fudfomo.co