What is Dump?
Dump, or dumping in the crypto world, is when a large holder of a certain cryptocurrency sells off all or part of their holdings at once. This can lead to a sharp decrease in the price of that particular cryptocurrency. It’s often seen as an extreme form of profit taking by major holders and investors who want to cash out quickly and on mass scales. The dump can also be caused by market manipulation, either intentional or unintentional – such as when whales (large-scale traders) sell large sums with the intent to drive prices down before buying back in at lower prices. In any case, it creates panic among other investors who fear they’re going to miss out on potential profits and leads them into selling off their own coins too – thus causing even more downward pressure on prices.
