What Is a Dump in Crypto?

‘Dump’ refers to a downward movement in a particular asset or the market as a whole, and is generally attributed to large sell-offs. The term ‘dump’ is related to the term ‘HODL’, where, during a sudden price drop or downward movement in a particular asset, holders may mention they are “hodling through the dump.” 

The term ‘dump’ is also commonly tied to pump-and-dump schemes, where illegal activity is carried out by malicious actors to artificially increase the price of an asset through bad practices. Then, they eventually dump the asset when the price is high, while taking their profits and leaving other investors empty-handed.

Key Takeaway

Dump is a term referring to the sudden price drop of a specific asset or downward market movement.

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