• Thu. Oct 6th, 2022

Cryptocurrencies, beware of the Pump and dump

Pump and dump

There are so many ways to make money with cryptocurrencies is the Pump and Dump an effective but not correct way to make money with Crypto.

There is a strong link between eSports and Cryptocurrencies, in many cases in a positive way, in others, unfortunately in a negative way. What happened recently with some members of the FaZe Clan is a negative example to be condemned. There are so many ways to make money with cryptocurrencies but you have to be very careful.

What is Pump and Dump?

Basically, you buy a cryptocurrency at a low price, then create an event that raises the value of this currency. If you have a lot of followers on Youtube or Twitch or on social networks you can recommend it or make a video about it. So in a short time the currency goes up and you sell it back to the maximum by cashing in a nice sum.

Three members of the celebrated FaZe Clan used this scheme to get rich. Kay, Jarvis, Nikan, and Teeqo have exploited their popularity to improperly make money with cryptocurrencies. A system called “pump and dump”. A simple but very effective system. The three made a video on this “save the kids” cryptocurrency which had the purpose of helping children most in need.

After this video, the currency shot up and the three, who had previously bought large quantities of Save the Kids immediately resold it, obtaining a great profit at the expense of followers. The cryptocurrency in fact collapsed immediately after due to the huge sales. But investigators easily discovered this scam.

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So FaZe Clan decided to kick out Kay and suspend Jarvis, Nikan and Teeqo. As announced by a press release on Twitter. FaZe Clan wanted to specify that “Faze clan had absolutely no involvement with our members’ activity in the cryptocurrency space, and we strongly condemn their recent behavior. The trust and respect of our fans has been, and always will be, our number one priority. “

According to some, it was they who created Save the Kids and that this cryptocurrency had no other purpose than to defraud investors. The world of cryptocurrencies is a very interesting world full of possibilities but it is also a very dangerous world where fraud is still, unfortunately, very frequent. Care must be taken, the Pump and Dump scheme is one of the most frequent and most dangerous.

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