Former star projects take advantage of the “frenzy ” market to pump and quickly offload tokens; investors chasing “wild tokens” should not act blindly
BlockBeats news, April 14, recently some altcoins have been "soaring", with tokens represented by RAVE experiencing continuous surges driven by major holders, increasing dozens of times in just a few days. Although this kind of deliberate price manipulation is highly controversial and usually ends badly, aggressive investors still actively participate, hoping to buy the next "RAVE".
Based on this sentiment, some project teams take the opportunity to quickly push prices up and offload their holdings. Their common tactic is to create a strong upward candle in one hour to give the illusion of a "monster coin," and as retail investors jump in, the team rapidly dumps their tokens without regard to cost, causing the price to plummet. FF and INX are typical cases.
FF soared quickly in the early morning of the 11th, doubling from $0.07 within one hour and reaching a local peak of $0.17641, then fell sharply. As of the time of publication, the token has dropped back to $0.07786.
The INX team made no attempt to conceal their pump-and-dump strategy: after one day of price manipulation and doubling, at least two addresses quickly sold unlocked tokens worth around $400,000, leading to the token price being cut in half.
What is truly worth pondering is that the teams behind FF and INX were once star projects with substantial financing ($20 million and $65.3 million respectively), but now rely on deceptive tactics to gain liquidity, which is really lamentable.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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