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Crypto Pump and Dump EXPLAINED: How to Spot and Avoid It� A crypto pump and dump scheme involves artificially inflating the value of a token with marketing or whale activity to attract more buyers. Pump-and-dump schemes are a form of fraud. The originators of the scheme plan to take money from innocent investors by encouraging them to buy an asset based on. One telltale sign of a pump-and-dump scheme is copy-and-pasted messages by groups of social-media and discussion-group posters with similar.