Market Dump: Recognizing Crypto Sell-Offs
Dump is a sudden sale of digital assets.
What is dump?
A dump is a quick sequential sale of a significant amount of cryptocurrency, often by whale. In some cases, such sell-offs pull the price of the asset down.
The most famous example of a dump and its consequences occurred in December 2017, when Litecoin founder Charlie Lee sold his substantial LTC holdings amid fears that it amounted to a conflict of interest. At first, the markets seemed oblivious to the event. However, within days LTC dropped to the red line and lost almost half of its value. It took weeks to recover the lost value.