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The dangers of pump-and-dump scams and how Yieldfund protects you

The crypto market offers huge opportunities but also comes with risks. One of the biggest dangers investors face is pump-and-dump scams. These are organized market manipulations where the price of a cryptocurrency is artificially inflated to be sold for a profit, leaving unsuspecting investors with significant losses. Yieldfund protects investors from this risk through advanced trading strategies and solid risk management policies. In this blog, we explain how these scams work and how Yieldfund minimizes the risks for you.

What is a pump-and-dump scam?

A pump-and-dump is a form of market manipulation where the price of a cryptocurrency is artificially raised through coordinated purchases and misleading promotions. This often happens via social media, Telegram groups, and influencers who create false hype. Once the price has risen enough, the original buyers sell their coins at once, causing the price to crash, leaving other investors with losses.

How to recognize a pump-and-dump?

Pump-and-dump scams are often hard to recognize, but some warning signs include:

  1. Sudden, unusual price increases without any fundamental news.
  2. Large amounts of buy orders in a short period, often driven by social media.
  3. Influencers or groups promoting “the next big coin” without logical backing.
  4. Poor liquidity and low market capitalization, making it easy to manipulate the price

Many beginner investors fall into this trap due to fear of missing out on a “great opportunity” (FOMO). However, in reality, they are just the last link in a planned scam, where only the original manipulators make a profit.

How can Yieldfund protect you from this?

Yieldfund protects investors from pump-and-dump practices by only trading the top 100 most reliable cryptocurrencies. These cryptocurrencies are carefully selected based on fundamentals like market capitalization, adoption, technology, and stability.

Memecoins, which are often susceptible to price manipulation and volatility, are deliberately excluded from Yieldfund’s trading offerings. This ensures the focus is on digital assets with a proven track record and reliable growth potential, rather than risky, fast-fluctuating coins that are often targeted by pump-and-dump actions. Additionally, Yieldfund conducts thorough analyses and risk assessments to ensure investments are not made solely based on hype or speculation. This provides an extra layer of protection for investors, helping them focus on long-term stability and sustainable growth, without exposure to the risks of artificially inflated markets.

Conclusion

In conclusion, Yieldfund offers strong protection against the dangers of pump-and-dump scams by carefully selecting the top 100 most reliable cryptocurrencies. By not trading memecoins and only investing in digital assets with a solid foundation, Yieldfund minimizes the risks of market manipulation. The platform focuses on long-term stability and sustainable growth, allowing investors to concentrate on safe, well-informed investments without worrying about artificial price fluctuations and speculative hype.

Invest today with Yieldfund

Ready to make your high returns dream come true? Invest in Yieldfund today. After a one-time investment, we take care of the rest, and you will see your capital grow!

Disclaimer: The content of this article do not constitute financial or investment advice.

Yieldfund's last trades

XLM/USDC
Short
5.18%*

Entry price
0.2642

Exit price
0.2627

Date
March 16, 2025

AVAX/USDC
Short
5.25%*

Entry price
18.3980

Exit price
18.2940

Date
March 16, 2025

SOL/USDC
Short
5.17%*

Entry price
129.5000

Exit price
128.7700

Date
March 16, 2025

*The trade percentages are the net percentages. The trade costs have already been deducted.

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