The cryptocurrency market is not just opportunities, but also traps. The volatility is huge, new tokens appear every day, while old ones suddenly drop. Let's figure out why this happens and how to protect your investments.
🕵️ Why do scam coins enter the market
Scam coins are tokens created with the aim of quick profit for developers, rather than a real project. They appear for several reasons:
Quick profit for creators
Creators issue a token, actively sell it through social networks, and promise 'mega profits.' After investors come in, the team often disappears — classic rug pull.
FOMO manipulations (fear of missing out)
Viral posts and 'influencers' create hype, causing people to buy the coin without analysis.
Low entry threshold
Anyone can create a token on BSC, Ethereum, or Solana with minimal costs. Therefore, the market is regularly filled with hundreds of questionable projects.
💡 How to distinguish a scam coin:
No real product or team.
Aggressive marketing campaign without a proven roadmap.
Lack of audit of the smart contract.
📉 Why coins 'roll' down
The fall in cryptocurrency prices is a normal part of the market. The reasons can vary:
Manipulations by market makers and large players
Large traders (whales) can 'shake' the market, creating panic sell-offs and buying on the dip.
Low liquidity
Small coins can be easily 'pulled' if a large wallet decides to sell.
Regulatory news and investor fear
Any negative news about a token ban or tightening rules immediately affects the price.
Lack of long-term demand
If a coin exists only on paper, without real use, its price quickly falls after the hype.
✅ How to choose a coin to buy
Choosing a coin is an art, but there are proven principles:
Team and product
Who is behind the project? Is there experience? A real product or just promises?
Audit and security
Check smart contracts and the presence of audits from third-party companies.
Liquidity and capitalization
Small coins with low liquidity risk crashing during large sales.
Community and transparency
Active discussions on official channels, open reports — a good sign.
Marketing check
Don't fall for aggressive FOMO. Real projects grow gradually.
💹 What are the responsibilities of a market maker
Market maker is a key player on the exchange. Their goal is to maintain liquidity and price stability, but their role is often misunderstood:
Creating an order book
The market maker places buy and sell orders to enable trading without significant fluctuations.
Smoothing volatility
If the coin falls or rises too quickly, the market maker helps 'unload' sharp movements.
Supporting trading activity
An active order book attracts traders and increases trust in the coin.
Sometimes manipulations
In reality, market makers can 'shake' the price to create attractive entry/exit levels — thus, it’s always important to check liquidity and not follow hype.
🔑 👇🏻👇🏻👇🏻
Scam coins appear for the creators' quick profit.
The price of coins is falling due to panic, low liquidity, and the actions of large players.
Choose a coin based on the team, product, audits, and community, not hype.
Market makers support liquidity, but sometimes their actions can 'shake' the market.
💡 Tip: never chase quick growth. Analyze the project, check the data, and trade consciously.
