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Pump is a phenomenon I have seen hundreds of times in the market, and every time it costs someone money.
Yesterday, I was once again convinced by the example of UNFI. The exchange announced a delisting, and everyone started thinking — okay, the coin will drop, shorts will be profitable. Makes sense, right? But here’s the catch — that’s exactly what they were playing on.
The price skyrocketed by 480% in an hour, then sharply dropped. It was a pure pump — market manipulation in its purest form. Those who shorted got liquidated, those who bought at the peak lost everything. A classic scenario.
Look, pumps always work the same way: a group of players artificially raises the price with large purchases, then they sell when new investors have already bought at the top. The first ones profit, the rest take losses.
I’ve fallen into these traps so many times. That’s why I always say — shorts are dangerous. If you’re already shorting, always use a stop order. If the asset suddenly jumps 500-600%, and that’s not part of your strategy, you need to exit. Don’t wait for it to fall further.
The main thing — don’t believe promises of quick profits. The market will always find a way to take money from those who are careless. Protect your investments, set stops, look at charts critically. It’s the only way to survive in crypto.