My cousin, Mike, recently learned a harsh lesson after falling victim to a cryptocurrency pump-and-dump scam. Mike was an enthusiastic investor, always researching opportunities to make quick profits in crypto markets. One day, he joined a popular Telegram group promoting a new altcoin named “RocketCoin,” advertised as the “next big thing” set to explode in value overnight.

The group administrators, claiming insider knowledge, actively encouraged members to buy in quickly before the price surged. Trusting the hype and seeing other members’ excitement, Mike invested nearly $1,500, believing he was seizing a rare opportunity.

Initially, the price of RocketCoin did rise sharply, creating an illusion of legitimate growth. However, within hours, the coin’s price suddenly collapsed dramatically. Mike realized too late that group administrators had secretly bought the coin early and artificially inflated its price by promoting it aggressively to unsuspecting investors, only to sell off their holdings at the peak—leaving investors like Mike holding worthless tokens.

Mike’s loss was both financially and emotionally devastating. His experience highlights the dangers of pump-and-dump schemes, emphasizing the importance of thoroughly researching coins before investing and avoiding investment groups that aggressively promote obscure cryptocurrencies without transparency.