Pump and dump is a manipulative practice of artificially inflating the price of a cryptocurrency. Prices are inflated by spreading positive hype and coordinated buying either by individuals or groups.
These activities create an illusion of high demand after which these bad actors will sell their holdings at the peak. Thereby, profiting at the expense of unsuspecting investors as the price plummets.
The pump and dump scheme often relies on spreading false or exaggerated information to entice others to participate. Regulatory bodies discourage such illicit activities and take strong enforcement action to safeguard market integrity.