What are dumps and how do they really happen

💣 If you’ve ever opened a crypto chart and watched the price drop 30% in just a few minutes — congratulations, you’ve witnessed a dump live.
But what is it really, and why does it keep causing chaos even on the most “civilized” exchanges?

1. What is a dump

A dump is a sharp and large-scale drop in an asset’s price caused by mass selling.
In simple terms, someone — or a whole group — starts unloading huge amounts of coins, and the price collapses.

Usually, a dump is part of the classic “pump & dump” scheme — “inflate and dump”:

• first, the asset is “pumped”, creating hype and an illusion of growth,
• then it’s dumped at a high price, leaving late buyers with useless tokens.

2. How it looks in reality

The pattern is almost always the same:

1. Anonymous insiders or big players start buying a low-liquidity token.
2. Chats, posts, and “analysts” appear — “X100 soon! Project connected to Binance! Don’t miss it!”
3. The price rises — the crowd sees green candles and starts buying.
4. Once the target price is reached, the main holders (whales) start selling in bulk.
5. The market crashes, liquidity vanishes, and the crowd is left “at the bottom of the chart” with tokens now worth less than a cup of coffee.

3. Who causes dumps

• Whales — big players controlling millions of tokens, profiting from price swings.
• Project insiders — sometimes even developers “dump” their own tokens after listing.
• Telegram manipulators — the “Pump Groups” promising “secret X10 signals”.

4. Are there “natural” dumps?

Yes, quite often. Not every crash is a conspiracy.
Sometimes dumps happen because:

• investors take profits after a long rally,
• bad news (exchange hacks, CEO arrests, stricter regulations),
• sudden liquidity exits (like Bitcoin dropping sharply).

In these cases, the crash is just a part of the market cycle, not a planned attack.

5. Why dumps are especially dangerous in crypto

The crypto market is young, volatile, and barely regulated.
That’s why “pump and dump” schemes are easy to pull off:

• the coin costs pennies,
• liquidity is tiny,
• the team is anonymous,
• most tokens are in a few wallets.

That’s how “legends” like $PEPE, $BONK, or yesterday’s “innovative” coins are born — only to vanish after the first sell wave.

6. How not to get caught in a dump

1. Check token distribution. If 80% is in five wallets — run.
2. Avoid Telegram “signal” and “pump” groups. 99% are scams.
3. Watch liquidity. If 24h volume is $10,000, a “300% rise” means nothing.
4. Don’t buy the top. If the token’s up 500% today — you’re already late.
5. Research the project. No website, empty GitHub, CEO named “CryptoDoge1988”? Enough said.

7. Why dumps still exist

Because they’re part of human psychology.
Everyone wants “fast and easy” profit — and manipulators exploit that.
Every new market cycle brings fresh meme coins, pump groups, and “insiders” promising effortless riches.

In the end, it always ends the same:
someone sells a Lamborghini, and someone sells their phone to pay gas fees.

💬 Conclusion

Dumps are not just chart drops — they show how emotional and alive the crypto ecosystem is.
Yes, manipulation is everywhere, but the moral is simple: the market always punishes those chasing easy money.

🎥 You can watch how dumps really happen in our Telegram channel.