Through a method called “pump and dump.” It’s quite simple to understand without using financial terms. We are part of a private group of crypto traders and we artificially increase the price of an bitcoin that will bring us profit.
A “pump and dump” is the LEGAL ACT of an investor or group of investors promoting a stock they hold and selling once the stock price has risen.
We start buying large volumes of a coin with low trading volume. Let’s say that the trading volume is 100.000.000 PACcoins per day. Our group starts buying the coin, placing a huge buy wall of, for example, 50.000.000 PACcoins.
Since there is not enough liquidity (i.e. not enough people that are willing to sell the coin at that price), we start to push the price up with the wall. Other traders are soon aware of the “trending” coin, as it has a day-to-day price increase of, let’s say, 50%.
This increase in price attracts other investors looking to make a profit. That way, the demand slowly turns into reality, as more and more people want to buy the coin.
When the price is high enough, we start selling the large amount of coins we bought earlier. This results in an incredible large profit for us, from 200% to 250% each time we “pump”, also increasing the overall price of the coin we choose to bump.