PriceManipulation

🚨 Price Manipulation: The Fake Pump Before Delisting! 🚨

When a coin nears a delisting date, you might notice something strange happening in the market... a fake pump! 💥 This is a typical price manipulation scenario, especially for coins like $LINA before they’re removed from exchanges. Let’s break it down and see why this happens! 🔍👇

1️⃣ Pump Before Delisting 🚀

Before a coin gets delisted, the price often drops due to fear and uncertainty. 😨 However, some market makers or whales know that retail traders may panic sell, while others might try to catch a “last-minute” rally.
What do they do? 🤔
Pump the price temporarily to create the illusion that the coin is bouncing back. 💸 They inject liquidity into the market to create buying pressure, pushing the price up. The goal? FOMO (Fear of Missing Out)! Retail traders think the coin is gaining value again, and they start buying in. 📈

2️⃣ Why Does This Fake Pump Happen? 🤷‍♂️

💡 Liquidity Grab: Delisting coins often have low liquidity, making them easy to manipulate. It doesn’t take much capital to push the price a little, tricking traders into believing there’s a real movement.
💸 Attract Last-Minute Buyers: Traders believe the coin might get revived post-delisting on other platforms, hoping for a miracle. This fuels the pump as they buy in, pushing the price higher. 🚀

3️⃣ Price Drops After Delisting Announcement 📉

After the pump, the price typically crashes once the delisting happens. With lower liquidity, the price spirals back down, often lower than before the pump. 💔 Those who bought during the fake rally get stuck in a losing position. 😩

4️⃣ The Cycle of Fake Pumps 🔄

It’s a classic “Sell the News” situation. 📰
The price gets pushed higher before the delisting (sometimes with fake or inflated volume), and once the delisting happens, the market corrects.

#Crypto #PriceManipulation #Delisting #LINA #TradingTips
$LINA