🧐 The story of the order book trap: A lesson from a market maker scam

Once upon a time, in the order books, a man appeared and claimed he would buy coins at $10 each.

Traders looked around and saw many coins, so they rushed to DEX exchanges to gather stock.

The man bought thousands of coins at $10. As supply began to dwindle, traders gradually stopped buying.

At that moment, he declared: "I will buy at $20!" – making traders excited again, continuing to purchase coins.

Gradually, the supply ran out, and traders began to leave. But unexpectedly, the buy price increased to $25, making it extremely difficult to find a coin to buy.

The man then announced: "I will buy at $50!" But this time, he said he had to go to the city, and his assistant would buy coins on his behalf.

While he was away, the assistant told the traders: "Look, this is the huge stash of coins that the boss has gathered. I will sell it to you at $35 with linear vesting. When the boss returns, you can sell it back at $50 and make an easy profit."

The villagers hurriedly emptied their pockets to buy all those coins, hoping to cash in when the boss returned.

But... they never saw him or the assistant again. All that was left were worthless coins!

And that is how some foundations and market makers create scams to siphon liquidity and then run away!

Source: 0xlaiyuen