Hey guys,
I've checked some intersting altcoins which are pretty cheap now, the projects look promising and legit but I'm still afraid that they could be another pump and dumps (there were so many of them already!). What are the signs or metrics that send alert signals about the projects and I should check deeper or not risk my money? Or is it just impossible to tell if it's another pump and dump scam project.
Pump and dump is only possible with low volume coins and that too on bad quality exchanges like yobit etc where most coins are just for the sake of pump and dump and they provide no real use case. To avoid such coins you should trade only genuine projects.
Pump and dump can be with all coins except for a few powerful top coins. The groups involved in this pump and dump are not all small, there are many large groups. These groups can play pump and dump games with any coin they want. There is no guarantee that big exchanges will not be pump and dump, now most of the large exchanges are involved in pump and dump. So in all cases investors and traders need to be a little more careful.
I wouldn't worry about pumps and dumps if you just invest in coins that aren't new. As early as of now, its best to grab a bag for the old coins we knew are likely going to blowup.
There are also coins with huge daily volume but the price still is less than $0.25, lots of them in the list on CMC. It can only mean these projects has genuine traders there with millions of volume like the ADA, NEM, TRX and XLM.