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1. Alpha's manipulative operations are ongoing.
Today, Paul saw two charts related to alpha in the group and wanted to share them with everyone, while also showcasing some blockchain technology points.
Alright, without further ado, let's begin the formal explanation.
We all know that alpha's points = balance points + trading volume points. Trading volume requires manipulation, so can we think of a way to manipulate the balance? Look, isn't that what we're doing?
Currently, wallet balance calculations are based on on-chain data. This means there are 2 holders, but the market cap has reached 1.2e, which is very high. If this token is deposited into the wallet, does it increase the balance? First, regardless of whether Binance counts this, such an operation is worth looking at the details.
2. How is the 'market cap' of a coin calculated?
Market Capitalization = Total Circulating Tokens × Current Market Price, which we often hear as MC.
Total Circulating Market Cap = Total Tokens × Current Market Price, which we often hear as FDV.
3. So how do they 'create' high market caps?
In fact, many 'amazing market caps' are created through artificial manipulation of liquidity pools and token distribution, and can even be described as a false market cap bubble. Let me explain in detail.
For example, if you have a token, issuing 100 million in total, and only using a very small amount of tokens to set a price on-chain, and placing 1000 tokens into the liquidity pool (like Uniswap/PancakeSwap) with a buy price of $1, then the 'market price' is $1, making the market cap = 100 million × $1 = $100 million, but the actual money that can be sold might only be a few hundred or thousand dollars.
The main operational steps require cross-trading.
A small amount of liquidity creates high prices: They add a small amount of ETH (or USDT) + a small amount of tokens to the pool, and then they buy and sell among themselves (cross-trading), continuously pushing the price higher, like raising it to $1, $5, naturally increasing the market cap.
Locked + Non-circulating, creating a sense of scarcity: They usually keep 99.9% of the tokens non-circulating. For example, if they create 100 million tokens but only release 10,000, keeping the rest locked in the developers' wallets (even pretending to 'burn' them), when the price is slightly raised, the market cap skyrockets, but the circulating market cap (the part that can actually be sold) is extremely low.
You can buy, but you can't sell: the mechanism of being blacklisted.
So what characteristics do these high market caps have?
The pool is self-created, and the price is pushed up by their own trades.
Very low liquidity.
Wallets are concentrated, with the vast majority of tokens in 1-2 addresses, so retail investors cannot truly cash out.
Alright, the knowledge points are done. Now let's discuss how popular alpha has become.
Haha, seeing this is really funny. You've got ten years of experience, and let me tell you, brother, are you from the future or what? Binance seems to have only been around for a little over 8 years this year. You've got ten years, at least be a bit logical when deceiving people.
Alright, Paul is pulling out the big guns now.
Today, no 88.
And it's not 8.8 either.
All you need to do is follow along and keep your eyes wide open!
We are not here to exploit anyone; we are here to go crazy!
Brothers and sisters, charge ahead!
There are really a lot of talented people.