What is Dumping in Cryptocurrency
Maybe you have heard of the term, Bitcoin Dumping, the Cryptocurrency market is dumping etc. What does Dumping mean in Cryptocurrency?
Meaning of Dumping in cryptocurrency is the selling of cryptocurrency by the people (more often called as Whales of cryptocurrency). When some specific coin dumps people also name that term by putting the name of crypto before the dumping. Like if Bitcoin is dumping they call it Bitcoin dump, Tron dump if Trons are dumping, Stellar dump etc.
In Dumping, Crypto Whales sell off the coins that they have in huge number. Generally, they do it when the price of the coin is ATH to gain maximum profit. Sometimes they just dump their coins intentionally to manipulate the price of that coin. When a coin has dumped, the price of that coin decreases, as there is more selling than buying of that coin, so they can undervalue that coin to buy again at lower prices for maximum profit.
While Pumping and Dumping are illegal in the stock markets. As we are talking about the cryptocurrency or virtual market. As it is not regulated by the government, hence it is a prime target for scammers. Whales often do Pump and Dump to manipulate the price of the coin and do buy and sell for profit.
To read how the price of a coin or ICO is decided please read this article.