Zhu Su: The manipulation model where Telegram group members buy low-market-value tokens to create a surge will eventually die out

Zhu Su, the founder of Three Arrows Capital and OXFUN, reflected on the phenomenon of Pump groups in the crypto market in 2018 on social media. At that time, some Telegram groups had hundreds of thousands of members. The operators would release information about low-market-value tokens to attract group members to buy in bulk. These token prices could usually rise by 100%-200% in a short period of time. Even if the price subsequently fell back, many uninformed external investors still pushed the price higher than its initial level.

However, as interest in this trend declined and operators hoarded too many tokens for sale during price increases, this model eventually lost its appeal and gradually ceased.