cRYPTO Glossary

Anti-dump or Anti-Dumping Policy in the world of blockchain refers to a set of rules designed to protect investors from falling victim to pump and dump schemes.

Explanation of Specific Terms:

• Pump and dump scheme: A fraudulent practice where the price of a token or asset is artificially inflated ("pumped") by a group or individual (often called a "whale") through misleading or aggressive marketing. After the price increase, the tokens are sold off quickly ("dumped"), leading to a significant decline in price and causing losses to other investors.
• Investors: Individuals who buy tokens or assets with the expectation of gaining a return on their investment.
• Policy: Guidelines or regulations implemented to prevent or mitigate the impact of pump and dump schemes on the market.

Key Points for Beginners:

• Why it's important: Anti-dumping policies aim to promote fair and transparent trading practices in the blockchain and cryptocurrency markets, protecting investors from manipulation and sudden price crashes.
• How it works: These policies may include measures such as monitoring trading volumes, enforcing trading halts or limits, and implementing strict disclosure requirements to prevent market manipulation and ensure market stability.