After ten years in the crypto world, I've seen the most ridiculous scene: the coin price drops by 20%, and the comments section is filled with cries of 'the market maker is targeting me' and 'they must be watching the few coins I have.' Brothers, wake up! Market makers often hold billions in funds; they really don't need to bother with your little change. The ultimate goal of market manipulation is to ensure that when the price rises later, there are 'green lights all the way' for selling, and 'smooth sailing' when offloading, while you are just a passive participant in this 'chip exchange.'
Today, I will reveal the truth about a small cryptocurrency 'Star Chain Coin (STC)' that I personally experienced. It's all solid information; once you understand it, you won't panic and sell off during the next major drop!
When STC was just launched, it was priced at 1.2 USD, with a circulation of 10 million pieces, and retail investors held 60% of the chips. At that time, the operators quietly accumulated 4 million pieces at the bottom but delayed the price increase — I saw through this operation at the time: not clearing out the floating chips before a rise is just giving retail investors a 'cash machine.'
As expected, a textbook-level wash drama began, with every step precisely grasping the psychology of retail investors:
Phase One: The slow decline like boiling a frog
The price fell slowly from 1.2 USD to 0.9 USD without any positive or negative news, and the trading volume was ridiculously low. At this time, the psychological activity of retail investors was like a large-scale internal struggle: 'Should I wait a bit more?' 'What if it goes to zero?' 'Forget it, losing less is better than losing everything' — thus, a group of impatient 'swing traders' cut losses and exited, while the operators silently took over near 0.9 USD, like picking up cabbages.
Let me insert my core view here: a volume-less downward trend is not the end of the market; it is the operators 'filtering people' — clearing out retail investors who have a 'quick in and out' mentality, leaving behind only the strong holders.
Phase Two: The 'Roller Coaster' that lures in bottom-fishing investors
Just when everyone thought 0.9 USD was the bottom, the price suddenly spiked to 0.7 USD and then quickly pulled back to 0.95 USD. A group of bottom-fishers cheered, 'Caught the golden bottom,' and frantically increased their positions. As a result, the operators quickly dumped, directly breaking the previous low to 0.65 USD, burying all the bottom-fishing capital inside. I call this operation 'closing the door to beat the dog.' The bottom-fishing brothers thought they picked up a bargain but actually stepped into the operators' trap.
Remember: a rapid rebound after a sharp drop is likely a trap for more buyers; the real bottom is never 'picked out.'
Phase Three: Ultimate psychological warfare, creating panic
At this time, various FUD messages began to circulate in the market: 'The project party reduced the funding pool support,' 'early holders left in batches,' 'the technical team is suspected of running away.' The price followed down to 0.5 USD, and the forums were full of desperate statements like 'I cut losses, I will never touch small coins again.' Meanwhile, I was watching the market and clearly saw the operators intensively accumulating in the 0.5-0.6 USD range. This is a typical 'panic wash,' using rumors to shatter the last psychological defenses of retail investors.
Phase Four: V-shaped reversal, closing the golden pit
When retail investors had cut losses nearly completely, the operators quickly pulled the price back to 1 USD with only a small amount of capital, creating a perfect 'golden pit.' The retail investors who had cut losses were afraid to chase the rebound (worried about being trapped again), and the new investors entered at around 1 USD; at this time, the operators' chips increased from 4 million to 6 million, with an even lower average price, and the floating chips in the market were cleared out completely.
Later, STC rose all the way to 3 USD, with almost no significant selling pressure along the way. This is the magic of washing the plate: it’s not about grabbing your coins, but 'changing people' — replacing low-cost 'wavering investors' with high-cost 'dead bulls,' making future rises smooth sailing.
Honestly, I understand the pain you feel when cutting losses, and I also understand your anger towards the operators, but the survival rule in the crypto circle is 'understand human nature, grasp the logic of the main force.' Washing the plate is not the end; it is the 'warm-up exercise' for a new round of market movements.
Next time you encounter a crash, don't rush to complain; first think: Is this the operator washing the plate? Have the floating chips been cleared out reasonably?
Follow me, in the next issue I will reveal the 3 'signals' before the operator's rise, teaching you how to enter precisely at the end of the wash plate period, not only not losing but also being able to drink a soup with the operators!
Share in the comments whether you have had painful experiences of being washed out and cutting losses? Help you avoid 90% of the main traps!
