The Meme Coin Pump: A Cycle of Speculative Fever

The meme coin pump-and-dump cycle is a pattern of rapid price increases followed by sharp declines. These events are driven by attention and speculative demand, rather than revenue or a working product.

Not every sharp rally is manipulation, but the pattern repeats often enough to be worth examining. A meme coin pump typically begins with social media promotion, which attracts FOMO (fear of missing out) buyers. As prices rise, more buyers enter the market, pushing prices higher still.

The same dynamics that drive the pump also contribute to its demise. Early holders start selling, new buyers stop arriving, and liquidity cannot absorb the selling pressure. Automated sell orders can accelerate the move, turning a dip into a freefall within minutes.