Market Abuse (MiCA Title VI)

Pump and Dump

Coordinated price inflation followed by rapid sale at the peak — a textbook MiCA Article 91 market manipulation scheme.

Definition

Pump-and-dump schemes involve coordinated buying and promotion to inflate a crypto-asset price, followed by rapid sale at the peak by the schemers. Common with low-liquidity tokens. Prohibited under MiCA Article 91; also typically involves dissemination of false information.