What is Pump and Dump?
Pump and Dump meaning and Pump and Dump definiton
Pumping is artificially inflating the price of a cryptocoin or token by making buy orders at an abnormally high price on an exchange.
It's like going to a "Farmer's Market" and saying you want to buy 1000 free-range-bio-eco eggs for ten times they are worth. Most of the "farmers" there aren't in possession of that ridiculous amount, but they are willing to sell at that amount all they got. Seeing that hey handsomely increase their income with you they might say "Wait! I can get your eggs, "healthy-looking" sir." and start looking around for others who also got free-range-bio-eco eggs.
Now you or another scammer had already set-up a nice little shop in the back of the market where you sell exclusively free-range-bio-eco eggs. It's true that they are 2 times more than how much it usually costs, but the sellers "know" that they can sell them for 10 times more, so they start buying large amounts from the shady but nice looking egg-only shop.
As soon as the farmers come back to sell thousands of eggs to the healthy looking sir, he's gone, cheerfully laughing away.
The first part is called the "Pump" because you make it look like the price of an egg is actually way-way-way more higher than it actually is, and the second one is the "Dump" where you sell your actual eggs at double the price.