This post is the first in a series that will attempt to answer whether or not its possible to be profitable taking part in Crypto Pump Groups in 2021 as a complete new-comer to all groups and as someone that has never participated in a pump before.
I don’t know how many posts it will be, but expect at least a few updates until I’ve proven it’s profitable or as I go through the process of trying to beat the game and finally admit that it’s not profitable. The goal is to see whether or not I can get to the moon without waiting on Bitcoin to get there first.
Part 1: This post
Part 2: Update #1 — Strategy
Part 3: Update #2 — My first pump!
Part 4: Update #3 — Strategy for next pump
Part 5: Update #4 — My second pump!
The general opinion appears to be that all pump groups are scams and the organizers are the only ones that profit over the long term. I found a pretty good write up on the make-up of pump and dump schemes, and I have to say I’m starting the journey from a skeptical viewpoint — I tend to agree that if it sounds too good to be true then it probably is.
But I won’t let that get in the way of me throwing a couple of dollars to know for sure.
As at the time of writing I haven’t participated in a pump yet, but thankfully there is one due tomorrow (6th January 2021), so that will be my first update. So far, I’ve joined a bunch of groups on Telegram and Discord — some of them crypto trading signals, others pure pump groups.
The trading signal ones all promise to get you ridiculous returns, and most of them only post their winning trades in the free groups — all of them have a VIP group that you can pay various amounts for — I’m not sure if these are worth it, or are even legit.
It’s also worth noting that everyone is a genius in a bull market, and for the trades that don’t show a profit in the short term, time will generally solve the problem at the moment with Bitcoin soaring at its all time high. The proof will be whether or not the trades are still successful when Bitcoin turns bear, or even tracks horizontally for a few weeks.
Anyway, that’s a story for another day — we’re talking about pump groups.
I won’t go into a huge amount of detail on how the pump groups work, this article does a pretty good job of explaining it. But basically when you first start out, this is the situation:
Like every good Ponzi scheme, the money for the existing members comes from new members. And when the new members run out, the Ponzi scheme falls over because there is no money to pay the existing members. Pump groups appear to work this way to a certain degree — the main currency is how many new members you manage to invite to the group, because this is where the money to pay off the existing members come from.
They also claim to put out a social media campaign during the pumps that bring in new-comers’ money, but what appears to happen is the fastest members get paid off by the slowest members, and it’s the slowest members that lose money and move on to bigger and better things with their tails between their legs.
Stay tuned for an update tomorrow — I’m going to participate in my first pump and see if I can be fast enough to be profitable (going on the assumption that pumps in general aren’t profitable, and you have to get paid by the slow participants)!
If you’re keen to get involved, here are the groups I’m currently a member of:
Big Pump Signal — Discord
ThePump — Discord
PumpIt — Discord
Pump Makers, Risk Takers — Discord
Fire Pump Signal — Discord
Giga Chad’s Pump ‘n Dump Fraternity — Discord
Insider Pump Signals — Discord
Monster Pump — Bitcoin Investment — Discord
Pump Central — Discord
United Binance Pump — Discord
Nuclear Pump Signals — Discord
