What is Pump? (memecoin term explained)

A pump is a rapid, sharp rise in a token's price, often driven by hype, coordinated buying, or a fresh catalyst. A "pump and dump" pairs it with insiders selling the top.

Definition: Pump

A pump is a rapid, sharp rise in a token's price, often driven by hype, coordinated buying, or a fresh catalyst. A "pump and dump" pairs it with insiders selling the top.

Key idea — Most memecoin gains and losses happen during pumps. Knowing the anatomy of a pump — and where you are in it — decides whether you profit or become exit liquidity.

Why it matters to memecoin traders

Most memecoin gains and losses happen during pumps. Knowing the anatomy of a pump — and where you are in it — decides whether you profit or become exit liquidity.

Key things to know about pump

Early pump: rising volume + rising unique buyers + stable/growing liquidity.
Late pump: vertical price, euphoric chat, and the first big insider sells.
A "pump and dump" is engineered: insiders accumulate, hype, then dump on buyers.
Chasing a vertical candle usually means buying the last few percent before a dump.
The cleanest entries are early in a pump, not at the parabolic top.

A worked example

A coin 4x's in ten minutes on a viral tweet. Unique buyers stall, the dev wallet starts selling, and the "pump" rolls over into a dump on everyone who chased green.

What to watch out for

Watch out — If you only notice a pump because it is already vertical, you are probably the exit liquidity, not the early money.

Pump FAQ

Is pump something beginners need to understand?

Yes — Most memecoin gains and losses happen during pumps. Knowing the anatomy of a pump — and where you are in it — decides whether you profit or become exit liquidity.

Where do I see pump in practice?

Early pump: rising volume + rising unique buyers + stable/growing liquidity. Late pump: vertical price, euphoric chat, and the first big insider sells.

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Education only — not financial advice. Memecoins are extremely high risk.