Pump-and-dump schemes occur when a group artificially drives up the price of NFTs by simulating demand. They do this through campaigns of massive purchases. As a result, these NFT projects gain incredible momentum and attract the attention of unsuspecting investors who also buy the NFTs. Once the scammers succeed in getting the price high enough, they sell off and leave their victims with little or no value. A variant of this scam is NFT developers, including codes that prevent anyone else from selling these tokens. These schemes are often characterized by sudden and irrational spikes in the prices of new and unknown projects.
