The operations of market makers (institutions, whales, project parties, etc.) in the cryptocurrency market are far more aggressive than in traditional finance, due to 24/7 trading, high leverage, lack of regulation, and extreme retail sentiment. The core logic is as follows:
Cash flow is the lifeline, market capitalization can be manipulated: Pumping is only for selling at a high price, the formula is: Pumping cost < selling profit + low position buyback return.
First control public opinion, then control prices: Through KOL promotions, community water armies, and manipulation of emotions (euphoria → panic), let retail investors voluntarily hold until the market maker sells.
High position distribution is the ultimate goal: Utilize sideways “accumulation”, false breakouts, combined with positive news, to induce retail investors to chase high prices.
Wash trading creates false prosperity: Buying and selling to create fake trading volume, wash trading, drawing attractive candlestick patterns, and earning rebates from exchanges.
Leverage is an efficient harvesting tool: Inducing long positions through pumping followed by liquidations, or crashing shorts and then pumping, cleaning out retail contracts in both directions.
Information advantage is absolutely leading: Gaining key information such as listings, KOL collaborations, ecosystem support in advance, and even using MEV bots to front-run trades.
Focus on market capitalization rather than projects: Most hundred-fold coins rely on low circulation, violent pump to create FOMO, and then continue to distribute during unlocks.
The perfect ending is a return to zero: After selling off, the project runs away or stagnates, and the coin price returns to zero. Due to anonymity and regulatory gaps, market makers can make off with huge profits.
Top players create new narratives: From ICOs, DeFi to NFTs, Memes, market makers lead the cycle of the track, harvesting the funds and beliefs of an entire era.
The core difference lies in: Retail investors chase prices, while market makers manipulate human nature. Retail investors always believe "this time is different," but market makers understand "this time is the same, we can harvest again."
Therefore, the true anti-harvesting mindset is: Do not become the last one to take over in the carnival, and always remember — if you haven't figured out who the scythe is, you are the scythe yourself.
