Cryptocurrency pump and landfill scheme psychology: understanding of mind games played by investors
Cryptocurrency has been a hot topic over the last few years in the financial world as its value has increased to an unprecedented level. However, after this exciting market, there is a more threatening reality – psychology, which includes pump and landfill schemes that were used to manipulate investors from hard -earned money.
What are pump and landfill schemes?
Pump and landfill schemes are fraud for certain types of securities that include the price of security by artificially increasing the price by spreading false or misleading information about it. Cryptocurrency, pumps and landfill schemes usually take place in online marketplaces, social media platforms and other digital forums.
Psychology of bud and landfill schemes
Pumps and landfill schemes often use money washing, fraud investors and manipulate prices, hoping to get profit quickly. But what encourages these individuals to get involved in such behavior? To understand this, we need to look into the psychology of the pump and the thrown schemes.
greed psychology
In short, the psychology contained in pump and landfill schemes can be attributed to greed. People have an innate tendency to look for assets and material assets. By investing in security or cryptocurrency, they can feel excitement and predict potential returns. However, if the price starts to grow rapidly, some people may have too much confidence in their investment and start spreading false information to persuade others to buy at an increased price.
FOMO Psychology (fear skip)
Another factor traveling with pump and landfill schemes is Fomo is the fear of skipping. Persons who see others buying a certain cryptocurrency or security may feel pressure to join to avoid potential profits. This can encourage them to disseminate false information, fake reviews or other misleading data to persuade others to invest.
Psychology of social evidence
Social evidence is another important factor in pump and landfill schemes. When people see how others buy some cryptocurrency or security, they may feel pressure to join to appear socially responsible or avoid “legacy”. This can encourage them to disseminate false information or fake reviews to persuade others to invest.
Emotional manipulation psychology
Pump and landfill schemes are often associated with emotional manipulation. Scammers can use tactics such as a sense of urgency, using high pressure sales or playing emotions such as excitement, fear or greed. They can also create counterfeit individuals or profiles to gain the confidence of potential investors.
Examples of cryptocurrency pump and landfill schemes
Over the years, there have been many examples of pumps and landfill schemes. One noticeable example is the Bitcoin Futures fraud when a group of individuals created fake future transactions for Bitcoin and sold them to unsuspecting investors at increased prices. Another example is Mt. Gox Hack, where hackers stole millions of dollars worth of cryptocurrencies from the Japanese Stock Exchange.
Protect yourself from pump and landfill schemes
In order to protect against cryptocurrency pump and landfill schemes, it is necessary:
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- Be careful about unwanted tips
: If someone offers you an unreasonable advice on a particular investment, be careful – they may try to manipulate you to buy your pump and landfill scheme.
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