Why Do New Coins Always Plummet Upon Launch?
1️⃣ Historical Patterns:
In the past 3 months, 80% of new coins listed on Binance have fallen more than 15% within 24 hours. Market makers (whales) first raise the price to attract retail investors, then quickly dump to arbitrage.
2️⃣ Whale Tactics:
• Step 1: On the first day of listing, raise the price (for example, increase by 50%) to create an illusion of wealth, attracting retail investors to chase the rise.
• Step 2: After retail investors buy in, the whales short through contracts (borrowing coins to dump), manipulating the market with a small amount of capital.
• Step 3: When the price plummets, retail investors panic sell, and the whales buy back at low prices, repeating the cycle.
3️⃣ Liquidity Trap:
In the 5 minutes before opening, trading volume appears to be booming, but in reality, the whales are trading between themselves, creating a falsely inflated price that cannot hold.
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Retail Profit-Making Shorting Strategy
⏰ Golden Time: 30 minutes before opening (maximum volatility)
🔧 Steps to Operate:
1. First Minute: Closely monitor the opening price; if it suddenly rises over 10%, prepare to open a short position immediately (whale bait signal).
2. Third Minute: After the first wave of retail investors chase the high, open a short at market price (5x leverage is enough; don’t be greedy).
3. Fifteenth Minute: Set a 5% take profit (automatically close the position after a sharp drop), and if it continues to fall, you can manually add to your position.
⚠️ Risk Warning:
• Leverage should not exceed 10x, or it may lead to liquidation.
• Take profits promptly after a sharp drop, as whales may reverse the trend.
• Avoid previous high pressure levels (such as positions where the opening price increases by 200%).
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Whale Behavior Prediction
• Signal 1: A surge in open interest + funding rates turning negative → whales are building short positions.
• Signal 2: K-line shows a “long upper shadow” or “doji” → the rise has completed, preparing for a drop.
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Summary:
The nature of new coins like HUMA being launched is a harvesting game between whales and exchanges. Remember the mantra:
“Don’t buy at the top after a rise, don’t catch the bottom after a drop, run away at 5%, keep leverage low.”
(Strategies are for reference only; the crypto market is highly risky, and decisions should be made with caution.)