Module 02Define scam patternShort answer live

What is a pump and dump?

By the FOMOEgg CTO team · Updated October 16, 2026 · Lesson 7 of 48
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The FOMOEgg egg in the studio, illustrating: What is a pump and dump?
Short answer

Promoters hype a price with misleading claims, then sell into the buyers. Regulators call it a classic scheme.

How to check it yourself

  1. Watch for sudden promotion from many new accounts at once, often with urgent language.
  2. Check on the explorer whether large wallets send tokens to the pool while the hype peaks.
  3. Read the SEC's public notices on pump and dump schemes to learn the pattern they describe.

Sources

  • sec.govhttps://www.sec.gov/newsroom/press-releases/2024-165
  • dextools.iohttps://www.dextools.io/news/liquidity-pull-vs-slow-rug-key-signals

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Education only. Nothing here is financial, investment, legal or tax advice, and nothing here is a prediction or a promise about price. Memecoins are extremely high risk and you can lose everything you put in. FOMOEgg is a community-run memecoin and is not affiliated with Robinhood, PONS or fomo.