BullishBanter
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This is a typical price #manipulation scenario that often happens when a coin is nearing a delisting date.
Another #DelistingNotice coin $LINA fake pump
Let's break down why this happens and why it looks like a fake pump:
1. Pump Before Delisting
When a coin is about to be delisted, there’s often an initial drop in price due to fear and uncertainty. However, market makers or whales know that some retail traders might panic sell, while others might think they can catch a “last-minute” rally before the delisting happens.
What they do:
Pump the price temporarily to make it seem like the coin is bouncing back. This is usually done by injecting liquidity into the market, creating buying pressure.
The idea is to get retail traders to FOMO (fear of missing out) and think the coin is gaining value again.
2. Why the Pump Happens
Liquidity Grab: Delisting coins often have low liquidity, which makes them easy to manipulate. It doesn’t take much capital to push the price up a little, making traders believe there’s a valid move, and they buy in.
Attract Last-Minute Buyers: With the delisting date announced, traders might believe the coin could be revived post-delisting on other exchanges or platforms. They might jump in hoping for a sudden recovery, which fuels the pump.
3. Price Drops After Delisting Announcement
After the pump, once the delisting happens, the liquidity can dry up, and the price crashes back down, often lower than before. Those who jumped in during the pump typically get stuck in a losing position.
4. The Cycle of Fake Pumps
Sell the News: The price typically gets pushed higher before the delisting (sometimes on fake or inflated volume), and once the delisting happens, the market corrects.
Traders who bought in during the pump often realize too late that the spike wasn’t supported by any real news or solid fundamentals, and they sell at a loss when the price crashes again.
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Another #DelistingNotice coin $LINA fake pump
Let's break down why this happens and why it looks like a fake pump:
1. Pump Before Delisting
When a coin is about to be delisted, there’s often an initial drop in price due to fear and uncertainty. However, market makers or whales know that some retail traders might panic sell, while others might think they can catch a “last-minute” rally before the delisting happens.
What they do:
Pump the price temporarily to make it seem like the coin is bouncing back. This is usually done by injecting liquidity into the market, creating buying pressure.
The idea is to get retail traders to FOMO (fear of missing out) and think the coin is gaining value again.
2. Why the Pump Happens
Liquidity Grab: Delisting coins often have low liquidity, which makes them easy to manipulate. It doesn’t take much capital to push the price up a little, making traders believe there’s a valid move, and they buy in.
Attract Last-Minute Buyers: With the delisting date announced, traders might believe the coin could be revived post-delisting on other exchanges or platforms. They might jump in hoping for a sudden recovery, which fuels the pump.
3. Price Drops After Delisting Announcement
After the pump, once the delisting happens, the liquidity can dry up, and the price crashes back down, often lower than before. Those who jumped in during the pump typically get stuck in a losing position.
4. The Cycle of Fake Pumps
Sell the News: The price typically gets pushed higher before the delisting (sometimes on fake or inflated volume), and once the delisting happens, the market corrects.
Traders who bought in during the pump often realize too late that the spike wasn’t supported by any real news or solid fundamentals, and they sell at a loss when the price crashes again.
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