An anti-dumping policy is a collection of policies designed to protect investors from pump and dump scams. Dumping is a phrase used to describe an event in which a major investor, sometimes known as a whale, purchases a large number of tokens to significantly boost the price before selling all of them for a great profit.
Tokens controls price volatility by banning whales from buying or selling large amounts of tokens in a single transaction. To deter excessive currency dumping, it has an anti-dumping mechanism in place that imposes a 1/2/6 hour cooling-off time and higher tax after each transaction.
With the hysteria that accompanies a token price increase, you may be tempted to invest or gamble like everyone else, but there are some ground rules that you must follow.
- Keep a watch out for social media organizations that offer free signs that a pump is about to start. This is one of the indicators of a P&D system, in which some of the group members may be guiding the pump.
- Seek financial advice from a professional or perform your study to make better investing decisions. Be wary of any influencer who seldom talks cryptocurrency and suddenly begins endorsing a token at random.
- Invest just the amount you can afford to lose. An investor may profit from a pump-and-dump if the timing is right, but it's better to plan ahead of time in case something goes wrong and you end up losing your tokens.