Since the rise of cryptocurrencies, numerous terms and expressions have emerged. These include words such as "HODL", "Bagholder", "Rekt" and "Pump and dump". However, one term that has recently stood out in the cryptocurrency field is "pumpamental". This is a neologism formed by merging the words "pump" and "fundamental". The term refers to specific factors, events or aspects that can contribute significantly to increasing the value of a cryptocurrency.
First of all, the term "pumpamental" is not commonly used in the cryptocurrency field, but it is possible to come across it, in particular, when presenting a crypto project or analyzing a specific token.
According to the Urban Dictionary website, the term "pumpamental" refers to the fundamental characteristics of a crypto project that favorably drive up the price. This source also points out that the term "pumpamental" can include the notion of rapidly decreasing inflation of a token, or that of a regular token buyback in order to maintain the price or rarefy its supply. Finally, this definition suggests that certain characteristics contribute to stimulating interest and increasing the value of a token.
Following internet research, it would appear that 2019 is the year in which the term "pumpamental" emerged. This first appearance is linked to Richard Heart's notoriously dubious projects, and more specifically his HEX token. This research also revealed that a user on the Reddit social network had attempted to warn Ether owners wishing to invest in the new HEX token created by R. Heart. In this warning, the user states: "The phrase 'Pumpamental' is just another fancy term for 'market manipulation', and nothing could be more obvious than that".
Lastly, the term "pumpamental" has gradually spread throughout the cryptocurrency market, with a variety of meanings, depending on the context. On the one hand, it is used to designate the fundamental characteristics of a token or crypto project that favor a rapid increase in its value, such as halving, token buyback, token burn, community, marketing, or even use cases for a token or protocol. For example, Bitcoin's halving mechanism is seen by some as a "pumpamental" factor that contributes to an increase in its long-term value. Bitcoin's halving of block reward slows the creation of new bitcoins, thus limiting the currency's inflation. Combined with limited supply and growing demand, this may favor an increase in bitcoin's price over the long term. Similarly, Binance Coin (BNB) incorporates "pumpamental" criteria with its quarterly token buyback and token burn mechanism, set up by Binance to reduce the supply of BNB in circulation and encourage an increase in its long-term value. On the other hand, some people use the term "pumpamental" to characterize projects using illusion or hope marketing. This refers to a promotional strategy used to attract investors with the promise of high returns, get-rich-quick opportunities and extraordinary profits. This approach often emphasizes promises and aspirations rather than the realities and risks associated with investments.
In conclusion, the term "pumpamental" is used in various and sometimes controversial ways in the cryptocurrency sector. Some use it without negative connotations to describe the fundamental factors that favor rapid token appreciation, such as halving, token buyback or token burn. However, others associate it with market manipulation practices and unsavory schemes that exploit investors' emotions with exaggerated promises.
In any case, it's advisable to take a step back and carefully examine crypto projects and tokens before deciding to invest in them. It's essential to understand the fundamentals of the project, which means carrying out in-depth research into its team, technology, tokenomic, business model, presence of whitepaper and audits, etc. What's more, it's always advisable to be cautious when faced with offers that seem too good to be true. Despite the attempts of some, the cryptocurrency market has reminded us time and again that easy money is an illusion.