If you plan to participate in wild speculation coins like Alpaca, here are some key points you need to understand:
Strong control by the operators: The operators of these projects often have strong confidence in their market control, and they can maintain their operations by precisely controlling market sentiment and capital flow.
Profit sources for the operators: The way operators make money is usually through the normal psychological reactions of retail investors. The buying and selling behavior of retail investors provides opportunities for operators to profit, while operators achieve profits by manipulating market fluctuations.
Strategy of false dips: Wild speculation often involves creating false dips multiple times to attract retail investors to sell, followed by a price rebound. The real price drop usually occurs when retail investors have already been shaken out or lost confidence, and only after those 'disheartened' retail investors leave does the operator achieve the final drop.
Information asymmetry: In such projects, investors are often at a disadvantage due to information asymmetry. Due to market fluctuations and the secretive operations of the operators, external investors find it difficult to fully understand the true intentions of the operators. Blindly following the crowd may carry significant risks, so not participating may be a wiser choice.
Understanding operator intentions and contrarian psychology: If you decide to participate in such projects, you must deeply understand the operators' operational intentions and cultivate contrarian thinking. Operators will manipulate market sentiment, so you need to have strong psychological resilience and accept the possibility of multiple trial-and-error experiences.
Summary: If you want to survive in this highly manipulated market, you must remain calm, analyze rationally, understand how the operators you face operate, and be prepared to bear risks.
