The following are the key points about the scam behind IP coins:
• The pump-and-dump scheme: The explosive rise of IP coins is a trap set by the market maker.
• Highly controlled positions: IP coins are highly controlled, with a control ratio exceeding 90%. The official claims that 24.99% are in circulation and 10% are airdropped for community development, but the actual number of coins obtained by the community is 7,128,243, accounting for only about 2.85%, which is far lower than claimed, and it is speculated that these external tokens are mostly in the hands of the project party.
• Abnormal funding rate: One side has a net outflow, the funding rate is negative, yet the price is rising. The market maker sells in the spot market while opening a large number of long positions in the futures market, maintaining a spot price higher than the futures price to keep the funding rate negative, repeatedly inducing short positions, consuming the short players' orders and the funding rate paid by the shorts in the futures market.
• Abnormal price trends: There are large phantom buy orders that are always 0.02 - 0.03 lower than the market price, creating a strong false impression of buying support for secondary players, affecting personal quantitative strategies. Moreover, when the subsequent scam is revealed and there is no participation in the futures, it will lead to a large-scale sell-off in the spot market.#IP币 