The myth of demon coins from $15 to $600!
The trading strategy of the coin with ID $TRB is a textbook-level case of harvesting profits. Historical data shows that the market trend on New Year's Day 2024 was a typical double kill for both bulls and bears, with the price spiking from $268 to $593 and then crashing to $143 in just 12 hours, resulting in a total liquidation of $73.1 million across the network. This extreme volatility is not market behavior but typical manipulation by market makers.
The core of this manipulation lies in the highly concentrated chips. On-chain data shows that the circulation of TRB is only 1.95 million coins, with 95% concentrated in the hands of 20 whale addresses. These market makers began to accumulate chips at low prices as early as August 2023, when the price was only around $15. Once they had amassed enough chips, they used less than $40 million to push the price from $250 to $464.
During the price surge, the market makers deliberately create a FOMO (Fear of Missing Out) sentiment in the market, for example, by aggressively promoting in communities to attract retail investors. When retail investors chase the price higher, the market makers start monitoring contract data. When the LSUR indicator shows that retail investors are collectively going long, they immediately crash the price by 30% to liquidate the longs; when the funding rate drops to -2% to attract arbitrageurs, they suddenly explode the shorts. This precise targeting indicates that they hold both spot chips and can monitor the derivatives market in real-time.
The most ruthless phase is the selling stage. Market makers create false breakouts at high points and immediately sell their positions once the technical traders chase the price higher. In January 2024, the Tellor team was caught transferring coins to Coinbase at a high of $500, while large sell orders on Binance appeared two minutes earlier than those on Coinbase, indicating a coordinated harvesting operation. By the time retail investors react, the price has already been cut in half and then cut again.
Now TRB is rising again, and we must be wary of history repeating itself. Remember a few danger signals: a sharp increase in open interest but stagnant prices, extremely negative funding rates, and large on-chain transfers to exchanges; these are all signs that market makers are preparing to close their nets.
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