#BNBChainMeme
Is there cryptocurrency price manipulation? This is CHATGPT's answer:
🐳 Yes, there is cryptocurrency price manipulation, and common manipulation methods include:
1. Whales: Some large investors own huge amounts of a certain currency, which allows them to implement the "Pump & Dump" strategy, they artificially raise the price to attract small investors, then suddenly sell large amounts, which leads to a price collapse.
2. Money laundering trading: Some platforms manipulate trading volume by executing fake trades between linked accounts, giving the false impression that there is a large demand for the currency.
3. Fake news and media manipulation: Some projects publish misleading or exaggerated news to raise the value of their currency,
4. Order forgery: Some large traders place large buy or sell orders without intending to execute them, just to influence the decisions of other investors and direct market movement.
5. Private groups: There are groups on Telegram or Discord that agree to raise the price of a small coin with low liquidity, then sell it when the price rises, which leads to huge losses for those who enter late.
Therefore, it is necessary for the investor to be aware, not follow random trends without analysis, and avoid currencies with low liquidity because they are more susceptible to manipulation.