In theory, Crypto pump Discord groups are considered illegal and fraudulent, but since the cryptocurrency space is majorly unregulated in most jurisdictions, there are no laws related to the malicious activity of these kinds of groups. Essentially, scammers create artificial demand for unpopular and low-liquid tokens with low market capitalization by engaging their communities. After the artificial drastic price increase, the crypto pump Discord server owners and their inner circle sell tokens for a price that is much higher than the initial buying price, thereby making a profit. In this way, scammers make money on the losses of other investors who purchased an asset after them.