These penny stock scammers use false advertising to lure people into investing their hard-earned cash in these risky stocks – not knowing that there is no guarantee at all!
Pump and dump penny stock scams happen regularly. Penny stock promoters, or people who are responsible for selling the stock, will buy shares of penny stocks and inflate its price.
It works by shorting the stock on Robinhood or a Robinhood alternative (usually in a bull market) and then releasing false information to send the price plummeting.
This scam will involve a company that is almost bankrupt and has very little earning potential. Certainly not one of the appreciating assets worth investing in.