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Cryptocurrency pump-and-dump schemes: Everything you should know about these scams

Don’t be the victim of a rug pull.

Cryptocurrency fans view Bitcoin, Ethereum and Dogecoin as the future of money for the globe. The underlying blockchain technology allows crypto to work by creating a digital ledger that records transactions, which would seemingly create a safer form of currency. But where there’s money to be made, scammers aren’t far behind.

Crypto pump-and-dump schemes are designed to take advantage of people while making some big money for scammers. They generally involve influencers who receive financial incentives for telling people to buy a certain digital coin in order to raise its value. Once the value goes up, the scammers and influencers sell their coins and pocket the profits, while everyone else sees their investments lose value.

These schemes mark the latest twist in the ever-changing story of cryptocurrencies, which have created some millionaires while bankrupting others through their persistent volatility. Even Dogecoin, a cryptocurrency created as a joke, garnered mainstream attention thanks to high-profile figures such as Tesla CEO Elon Musk, who said at last week’s B conference that he «pumps, but doesn’t dump.»

He’s not the only one.

Earlier this month, popular esports organization FaZe Clan suspended multiple members who participated in a crypto pump-and-dump disguised as a charity drive while taking home tens of thousands of dollars.

With cryptocurrencies becoming easier to develop, scammers are taking advantage of people who have developed FOMO, or «fear of missing out,» and are looking to jump on new crypto coins in hopes of getting rich.

Here’s what you need to know about crypto pump-and-dumps.

What is a pump-and-dump scam?

A pump and dump is a securities scam usually involving stocks. Scammers create false hype about a stock in order to generate interest. Once investors start buying shares, the price of the stock goes up. When the price reaches a certain point, the scammers behind the fake hype sell all of their shares. This causes the stock price to plummet, which leaves new investors holding the bag.

The movie The Wolf of Wall Street portrayed the infamous pump-and-dump scam conducted by Stratton Oakmont investment firm in the ’90s.

How does this scam work with cryptocurrency?

It doesn’t work much differently than with stocks. A certain crypto asset is pumped up by people in order to make the value increase.

«As the prices rise, the pump creators dump their assets into the FOMO they’ve generated, resulting in a price crash that leaves the new buyers holding a bag of the assets that now have a lower value than they were purchased at, creating significant and often unrecoverable losses,» said Douglas Horn, chief architect of Telos Core Developers.

What’s different is what’s used for the pump-and-dump. Bitcoin, Etherereum and Dogecoin are well-established cryptocurrencies, and it takes someone with the following of Musk to increase or decrease their value. However, since creating a whole blockchain system for a currency takes a lot of time and effort, those knowledgeable about coding can create their own crypto tokens, which are digital assets using an already existing blockchain like Bitcoin or Ethereum.

These tokens, also referred to as coins, can be created easily like Shiba Inu, which the developers have referred to as a «Dogecoin killer» in a tongue-in-cheek manner. Developers can also create billions of these coins, which in turn means they go for fractions of a penny. One Shiba Inu token, for example, costs $0.0000065, so you can buy 100,000 tokens for less than $1.

Since someone can create billions of tokens easily that cost hardly anything, all that’s needed is to convince enough people to buy these super cheap coins. This can be done through Discord channels, forums or social media, or by getting an influencer to promote the coin in exchange for their own trove of coins.

If the scammers have 1 billion tokens worth $0.000001 then that’s only worth $1,000. But if they can increase the value of a token by just one decimal point, their stash of coins is now worth $10,000. If they dump it quickly, that’ll cause its value to crash.

Another small difference with the crypto pump-and-dump is the term. While it’s known as a pump-and-dump, in crypto circles the scam is referred to as a «rug pull,» as in the rug was pulled right out from under the investors. Part of enticing people to buy these super cheap tokens is to say they’re «rug-proof,» which means there are measures in place to prevent people who have a large number of coins from selling them within a certain time period.

What are some examples of cryptocurrency pump-and-dumps?

In July, four members of the FaZe Clan participated in a pump-and-dump for a token called SaveTheChildren. The pro gamers, along with other influencers, pushed the coin to their followers. Once the price increased, they began selling off the tokens they were given to be part of the scam, with some making an estimated $30,000.

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Another coin called SafeTrade was sold as «rug-proof» earlier this year. Once people started buying, the organizers sold their coins and left everyone else in the dust.

A 2020 study from the University of Technology Sydney and the Stockholm School of Economics in Riga found 355 instances of crypto pump-and-dump scams over the course of seven months. The organizers of these scams made millions.

Are pump-and-dump scams illegal?

For stocks, yes. For cryptocurrency, no.

The Securities and Exchange Commission is the government regulatory agency that investigates securities scams such as insider trading and pump and dumps. It doesn’t yet have similar rules for cryptocurrency, and doesn’t plan on implementing crypto regulations, at least for 2021.

How do you avoid crypto pump-and-dumps?

It’s important to understand if FOMO is contributing to your decision on whether to invest in a cryptocurrency. It may seem like everyone is getting rich off of Bitcoin or Dogecoin, but that’s not the case.

The next is to do your homework. Crypto coins or tokens can be created fairly easily by people who understand coding. If there’s a new coin that’s supposedly going to make you rich, do some web searches to learn more. The initial coin offering, or ICO, will have a «white paper» that offers details about the coin, who’s behind it, what their objective is and so on.

Then there’s a matter of the buzz that’s being generated. A way scammers get the word out about their coin is going into spaces where people are interested in cryptocurrency, such as Discord channels, social media and forums. If all of a sudden some person starts hyping up a brand new token, there’s a good chance they’re pushing a scam.

Be wary of any influencer who you may follow who hardly mentions cryptocurrency and randomly begins promoting a token. In the case of the FaZe Clan members, they promoted coins with a social media campaign and gave out thousands of free coins to their followers, which in turn entices other followers to buy coins — FOMO strikes again. If you’re going to take financial advice, get it from a professional and not someone whose claim to fame is being good at a video game.

Last, if you’re still interested in investing, then don’t invest more than you’re willing to lose. It’s possible that with the right timing, an investor could make money off a pump-and-dump, but it’s better to assume that the money you’re using to buy tokens will be gone forever.

Technologies

Today’s NYT Mini Crossword Answers for Friday, April 25

Here are the answers for The New York Times Mini Crossword for April 25.

Looking for the most recent Mini Crossword answer? Click here for today’s Mini Crossword hints, as well as our daily answers and hints for The New York Times Wordle, Strands, Connections and Connections: Sports Edition puzzles.


Today’s NYT Mini Crossword is a pretty easy one. 9-Across — the «dog-tor» clue — was a bit of a groaner, but I’ll take an easy answer over a witty, confusing clue any day. 4-Down was a little confusing, but once I filled in the other letters it made sense. (TEXAS and IOWA could’ve fit in 5-Across and 8-Across, with one T replaced in each answer.) Need some help with today’s Mini Crossword? Read on. And if you could use some hints and guidance for daily solving, check out our Mini Crossword tips.

The Mini Crossword is just one of many games in the Times’ games collection. If you’re looking for today’s Wordle, Connections, Connections: Sports Edition and Strands answers, you can visit CNET’s NYT puzzle hints page.

Read more: Tips and Tricks for Solving The New York Times Mini Crossword

Let’s get at those Mini Crossword clues and answers.

Mini across clues and answers

1A clue: «Beware the ___ of March»
Answer: IDES

5A clue: Sends a message
Answer: TEXTS

7A clue: Pond scum
Answer: ALGAE

8A clue: Teeny-tiny bit
Answer: IOTA

9A clue: Doctor who might more aptly be called a «dogtor»
Answer: VET

Mini down clues and answers

1D clue: «Don’t call ___ comeback!»
Answer: ITA

2D clue: Supermarket section
Answer: DELI

3D clue: Arnold Schwarzenegger or Chris Christie, e.g., for short
Answer: EXGOV

4D clue: 5-Across or 8-Across, if you change the T’s in this answer
Answer: STATE

6D clue: Musical chairs need
Answer: SEAT

How to play more Mini Crosswords

The New York Times Games section offers a large number of online games, but only some of them are free for all to play. You can play the current day’s Mini Crossword for free, but you’ll need a subscription to the Times Games section to play older puzzles from the archives.

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Technologies

Razer Releases a Vertical Edition Ergonomic Mouse

Two new mice for productivity still look like they were made for gamers, and that’s okay.

Razer has unveiled the Pro Click V2 and the Pro Click V2 Vertical Edition — two PC mice with ergonomics in mind, complete with expected Razer Chroma RGB LEDs in tow. The latter mouse, revealed Thursday, is Razer’s first vertical mouse and is priced to go head to head with the likes of Logitech’s vertical mouse offerings like the Lift and MX Vertical. 

As with almost any new tech product in 2025, the new Pro Click V2 mice will also ship with artificial intelligence features in the form of Razer’s AI Prompt Master, a productivity feature that will give you easier access to services like Microsoft Copilot. 

Both mice are available starting Thursday for $100 for the V2, and $120 for the V2 vertical mouse. 

Razer is going for a «do it all» mouse with the Pro Click V2

The Pro Click V2 and Pro Click V2 Vertical editions are shaped to fit your hand’s natural resting positions, making it more comfortable and easier to use for long periods of time. The Pro Click V2 is designed at a 30-degree angle and the Pro Click V2 Vertical is tilted at 71.7 degrees, which Razer says is the natural angle of a handshake. 

Of course, these are «productivity meets gaming» mice, so you can also expect a host of Razer features that you’d find on its gaming mice offerings. That said, the updated mice do feel more gaming forward than their predecessors. Both include the Razer Focus Pro 30K Optical Sensors for ultra precision and the mice should be able to track easily on glass. The mechanical buttons are said to be up to 6x more durable than the industry average and should be able to take 60 million clicks in their lifecycles. 

Both mice received the RGB treatment, with multi-zone lighting that can be customized further with Razer’s Synapse software. There you can also adjust DPI setting defaults and more.

Lastly, both mice should last a long time on a single charge: the Pro Click V2 offers up 3.5 months of battery life while the Vertical Edition can reach up to six months before needing to be charged again. Both mice can be charged via USB-C, and a 5-minute charge can give you 2 to 3 days of battery power when you’re in a pinch.

For more, don’t miss how tariffs are boosting the secondhand tech product market. 

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Technologies

Best Meta Quest 3S Deals: Save Big on This Affordable VR Headset, Plus Enjoy a Free Game and Trial Subscription

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