A Brief Discussion on the Phenomenon of 'Strong Manipulated Coins': The Risks and Illusions Behind the Prosperity
I. What is a 'Strong Manipulated Coin'?
A 'Strong Manipulated Coin' is not an official market term but a colloquial term used in the community to refer to a certain type of token that is highly controlled by a small number of large holders or pooled funds (commonly known as 'manipulators'). These tokens are inflated in price through artificial market manipulation. Such tokens often lack real technological support, application scenarios, or ecological construction, and their price fluctuations are almost entirely reliant on capital rather than genuine demand.
II. Typical Characteristics of 'Strong Manipulated Coins'
1. Lack of Fundamental Support
Although referred to as 'first-layer/second-layer network' projects, these tokens have almost no substantial progress in terms of technological updates, partnerships, or ecological applications. Community discussions are often focused on 'price' and 'when to pump' rather than the value of the project itself.
2. Highly Concentrated Holding Addresses
The top 10 addresses of most strong manipulated coins often hold over 80% of the tokens, indicating that liquidity is actually highly controlled. Ordinary investors easily become 'bag holders'.
3. Extreme Social Media Sentiment
The communities surrounding these tokens are often polarized: one part fervently promotes the token, while another part questions and criticizes it, creating a typical 'FOMO sentiment' (Fear of Missing Out).
However, there are benefits to strong manipulated coins like ADA that consistently rank in the top 10!
The so-called 'benefits' of strong manipulated coins:
1. Rapid and Large Price Increases (Aggressive Pumping)
Manipulators deploy large amounts of capital to rapidly pump the token price to attract market attention and retail investors to follow suit, creating an illusion of explosive growth. For short-term traders, if they time it right, they may achieve returns far exceeding the market average.
2. Strong Resistance to Downtrends in Certain Periods (Price Support)
When the token price drops to the cost zone or key support level of the manipulators, they usually intervene to protect their own interests and maintain market stability by buying large amounts to support the price, making it potentially more resilient to declines compared to other small tokens.
3. Creating Market Buzz and FOMO Sentiment
Strong manipulated coins typically generate high levels of discussion and community activity. Manipulators often release positive news through media, KOLs, and communities, combined with price increases, fostering a 'Fear of Missing Out' (FOMO) sentiment that attracts significant traffic and capital influx. $ADA