Yes, your loss is caused by the market maker.
In numbers, how the market maker deceives you into investing in an illusion. 🤔
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A few days ago, U.S. authorities issued an indictment against market-making companies like ZM Quant and Gotbit.
Everyone hears about market makers and their role in the cryptocurrency sector, but this indictment gave us an exclusive glimpse inside these companies.
Initially, market making is not an illegal thing, its goal is to enhance the market with liquidity.
But some market makers offer services aimed at artificially increasing trading volume and raising the coin's price so that the team can sell at high prices.
Don't think that these services are offered secretly or exclusively to certain projects!
Any project collaborating with such market makers receives a list of services at the following prices:
. $2500 to increase trading volume on decentralized platforms (Uniswap PancakeSwap)
. $800 to increase trading volume on centralized platforms
. $1500 to use a trading bot to plot price candles on trading platforms.
One of the projects that was revealed is the Satima coin, which is a meme coin that started in 2021.
The project team paid around $20,000 to the market-making company, and during this period, the coin achieved the highest trading volume in its history.
But the interesting thing is that U.S. authorities created a fake coin named NextFundAI and contacted one of the market makers to prove these allegations.
During the initial conversations with the NextFundAI project, the market-making company told them they were ready to deploy a thousand or two thousand wallets to complete 10~20 transactions every minute, in order to increase trading volume and significantly raise the coin's price to attract investors' attention.
Market makers also clarified that they can use old wallets with a previous transaction history to hide signs of illusory trading.
In full transparency, one representative of the market-making company explained that they can raise the coin's price accurately, for example from $1 to $2, so that the coin's team can liquidate.
Don't expect this to be expensive!
The price offered to increase trading volume was $3 for every $100 of trading volume.
In the end, one of the companies that were charged is Gotbit, and this company is responsible for many of the meme coins that recently appeared.
What was revealed in this indictment clearly exposes the tricks happening in the market, so don't be fooled by 1000% and 5000% increases, as this is mostly illusory.
