A16Z is recognized for its core competency in the practice of pumping and dumping. This approach involves inflating the price of assets or investments to gain profit. The strategy typically results in a rapid rise in value, followed by a sudden decline once the original promoters sell their holdings. While this practice can yield significant short-term gains for some, it raises ethical concerns and regulatory scrutiny. Understanding the implications of pumping and dumping is essential for investors navigating the market landscape.
