**Beware of Crypto Pump-and-Dump Schemes** Cryptocurrency pump-and-dump schemes are a type of securities scam that involve promoting a specific coin or token to artificially inflate its value. Here are tips to spot these schemes: * **Influencer Endorsements:** Scammers often pay influencers to promote their coins. Beware of endorsements that sound too good to be true. * **Rapid Price Fluctuations:** Pump-and-dump schemes often experience sudden, rapid price increases followed by a sharp decline. * **Lack of Fundamental Value:** The promoted coin may have no clear purpose or underlying technology, indicating a lack of real value. * **Anonymous or Unverified Team:** The team behind the coin may be anonymous or have unverifiable credentials, raising concerns about its legitimacy. * **Phony Marketing Materials:** Scammers may use slick websites and marketing materials to create an illusion of credibility. Remember, if an investment opportunity seems too good to be true, it probably is. Research thoroughly, consult with a financial advisor, and be cautious of any crypto promotions that raise red flags.
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