Market Manipulation in Crypto Trading (Part 2)
Crypto market manipulation was discussed in the last post. It is very easy to manipulate in this sector because the market is very easily manipulated here through various tools, techniques and events. In today's post, some real examples of crypto market manipulation will be presented to you. Hopefully, from the discussion, you will understand how we have seen examples of this in real life and how the crypto market is manipulated by some events. Let us explain some such real examples in today's 2nd part of this series.
Can you remember the Dogecoin event? Dogecoin is a meme coin. The price went up sharply with a small event. The value of the meme coin surged. A lot of this was driven by social media hype, with prominent figures (yes, Elon Musk!) tweeting about it. While it may not have been outright manipulation, it blurred the lines between organic growth and manufactured hype. This hype was clearly created by a small tweet. The real value of this coin was not so high but with the tweet the market was manipulated so some extend.
Can you remember another big event of BitConnect when the promised sky-high returns to its investors and collapsed spectacularly. It was later exposed as a Ponzi scheme. How funy!As a result, the early investors got profit at the expense of newcomers. Newcomers lost a huge in this scam. Early investors got high from the project as it was designed in that way. Ponzi scheme is difficult to detect at the early stage of the project due to manipulation by whales or big investors. Investors can play with the newcomers.
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VEIGO (Community Mod)
Upvoted! Thank you for supporting witness @jswit.
Thanks for sharing the second part of market manipulation, I benefited from the first one and this as well. Thanks for sharing.