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What is a Dump?

A dump is where a substantial amount of cryptocurrency is sold off in quick succession, often by a whale. In some cases, these sell-offs will drag the price of an asset downwards.

The term often goes hand in hand with a pump and dump schemes, which are almost always associated with fraudulent activity and an attempt to artificially manipulate the price of a cryptocurrency.

A perfectly legitimate dump may also relate to the swift disposal of your own cryptocurrency holdings in order to draw instant profit.

A well-known example of a dump and the effect it can have came in December 2017, when Litecoin founder Charlie Lee sold his considerably holdings of LTC amid concerns that it amounted to a conflict of interest.

At first, the markets seemed nonplussed by the event. However, within days, LTC nosedived down a red line and lost almost half of its worth. It took weeks to recover the lost value.

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