Contract trading in the cryptocurrency space seems to be a game between investors and the market, but it is actually a brutal zero-sum game. In this market, no actual value is created; wealth is merely transferred between different investors. The sudden wealth of a few is inevitably based on the liquidation of the majority. The saying 'wealth and liquidation are just a thought apart' is essentially the inevitable result of wealth redistribution under the rules of a zero-sum game.
The core of zero-sum games is that 'if someone profits, someone else loses,' and the total of profits and losses is zero. In contract trading, this characteristic is particularly evident. When investors earn huge profits through leveraged trading, these profits often come from the liquidation losses of other investors. For example, an investor who goes long on Bitcoin with 10x leverage and profits 100,000 yuan has that 100,000 yuan coming from the losses of investors who shorted Bitcoin or were forcibly liquidated after going long at the same time. Data from the Bank for International Settlements shows that 75% of cryptocurrency traders eventually lose money, meaning only 25% of traders can profit, and among those, the ones who truly become wealthy are even fewer.
Whales and traders are the 'winners' in zero-sum games; they achieve wealth through market manipulation and harvesting retail investors. Whales possess large amounts of capital and can influence cryptocurrency price trends through substantial orders, triggering retail investors' stop-loss or liquidation lines. For example, a whale might first buy a significant amount of a certain cryptocurrency, driving up the price to attract retail investors to chase high leverage, then suddenly sell off a large quantity, causing the price to plummet, leading retail investors to be forcibly liquidated while the whale buys in at a low price, earning a huge profit margin. In a contract trading of a certain small cryptocurrency in 2025, a whale harvested thousands of retail investors in a single day, making over ten million yuan in profit, while the total losses for retail investors reached ten million yuan. Traders also directly defraud retail investors through 'air coins' contracts and 'follow orders', achieving sudden wealth.
Ordinary investors are often at a disadvantage in zero-sum games, making it difficult to escape the fate of liquidation. On one hand, ordinary investors have small amounts of capital and cannot influence market trends, only passively enduring market fluctuations; on the other hand, ordinary investors lack professional trading knowledge and risk control abilities, making them easily swayed by emotions and leading to irrational decision-making. Many investors are tempted by the myth of getting rich quickly, blindly chasing high leverage and becoming the 'targets' of large whales and traders. The experiences of countless liquidated individuals like Xu Ning and Ms. Yao vividly illustrate the reality where a few become wealthy while the majority suffer losses in a zero-sum game.
Recognizing the essence of contract trading in zero-sum games is key to avoiding liquidation. Ordinary investors must understand that in this market, the chances of getting rich are extremely slim, while the risks of liquidation are ever-present. Rather than participating in this cruel game of wealth transfer, it is better to choose legal and compliant investment channels that can create actual value. For those who have already engaged in contract trading, it is essential to have respect for the market and the risks involved, establishing a strict risk control system and timely stopping losses to exit. The line between getting rich and liquidation is a test of one's understanding of the market's essence. Only by seeing the truth of contract trading in zero-sum games can one escape the temptations of greed and fear and safeguard their wealth.
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