If you trade crypto, you have seen RAVE. $RAVE price was 28$ yesterday and it crashed to 1$ today.

This actually happens a lot in crypto. It occurred in $MYX , $COAI , and many more.

A group of wealthy people look for a real project with low market cap but looks solid. Then, they start buying that asset and promote some news that this asset will explode.

In the same time, they enter futures trading longing this asset. So, they earn money from both spot market and futures market.

They must keep retail traders believing in the project by spreading rumors. I actually some of those rumers on binance square. They rumored that $RAVE will reach 80$ as $RIVER did. Triggering trader to FOMO.

And when they spent their liquidity, they start selling the asset and enter a short position on futures.

They make money from the rise and crash. And all of that money is the retail traders money who don't have experience.

Unfortunately, this is not illegal because there isn't a law forbidding that. However, it is tremendously unethical.

So, trading without risk management in crypto is a suicide because anything can happen in crypto. And if you think big players like $BTC and $ETH are safe, thing again. Both went down by 50%. Big players can be good on the long term only.

#crypto #cryptotrading #futurestrading