When you trade, do not think you are trading with another human. In 90% of cases, your counterparty is an algorithm (Bot) from massive financial institutions called Market Makers (MM).
🔸 The White MM is the silent heroes. They place thousands of Limit orders to ensure instant liquidity. Their profit comes from the Spread and high volume.
🔸 The Dark MM is the dark side of the unregulated Crypto world.
Projects hire MMs to fix prices, paying them with rights to buy tokens cheaply.
The Manipulation Cycle:
Bots trade with themselves to fake Volume and hit Top Trending.
Push price to create FOMO for retail.
MM exercises its right to buy at a low price and immediately dumps the tokens onto investors at a high price. The profit is enormous, while the token price subsequently plummets.
🔸 Signs That Market Manipulation Is Involved:
Price pumps vertically, stays flat, then dumps vertically back to start.
Unnatural long wicks sweeping Stoplosses on both Long and Short sides instantly.
Huge trading volume but price does not move
🔹 Never think this is a Fair Game. You are fighting supercomputers that know exactly where your Stoploss is. Before buying Low Caps, research who the MM is.
Before investing in a low cap coin, do you research who the Market Maker behind it is?
News is for reference, not investment advice. Please read carefully before making a decision.