Services offering such services use specialized software. For example, a trading algorithm or bot reacts with lightning speed to a sharp and unreasonable increase in the price of a coin and informs traders.
If any altcoin has seen a sharp increase in price by more than 5%, a Telegram group administrator immediately informs all subscribers about such a signal. However, the accuracy of such signals is still poor. What's more, Safetrading does not recommend risking your hard-earned money to profit from pump and dump signals.
If we talk about the United States of America, then pump and dump signals are considered nothing more than a scam. Therefore, be careful with services that offer similar services. Perhaps your personal and financial details will be used by a third party for fraudulent purposes.
Pump and dump is a type of fraudulent manipulation of the price of crypto assets. First, fraudsters artificially inflate the price by spreading misinformation about a possible change in the price of a particular coin. After that, dishonest providers begin to sell the coin that has shown a sharp rise in price due to the increased demand from the crypto community.