Someone released a secret video in which a well known Dogecoin influencer was exposed for running an illegal pump and dump group. While some members of the group think that they are all together scamming people outside the group, the influencer and his team are scamming the members.
Here’s what a scheme of a pump and dump group looks like.
1. The group leader takes a certain amount of money from the group members. In return, members receive information about which coin, token, will be pumped next.
The group leader takes money from the members in advance. This can be through Youtube membership, Super Followers on Twitter, Patreon as in the case of this Dogecoin influencer, or in any other way.
2. The leader of the group, together with his team, buys a token that has a small market cap and trades on a small volume. When he completes the purchase, he notifies the group members when he will announce which token will be pumped. He does not say which token and when it will be pumped, but he says when he will say the name of the token. You’ll see why later.
3. He gives the token name to the members and while they are buying and pumping the price, the group leader and his friends sell to the members.
This is the standard scheme of a pump and dump group, and this Dogecoin influencer, who has gained hundreds of thousands of subscribers and followers because of Dogecoin, is doing the same. But researching this case, I discovered something even worse.
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