OM officials indicate that this is triggered by liquidation 🐒

By the way, let’s analyze the trading techniques commonly used by project teams.

First, let’s explain the commonly used trading tactics in the current market, the simplest and most heard phrases:

1) High locked-up amount, low circulation amount

2) High coin price, low liquidity

High locked-up amount → Easy to control the market

Poor liquidity → Coin price is easy to control

This way, the project team can easily manipulate prices by buying and selling among themselves, raising the price, and continuously selling at high positions to unsuspecting investors. Of course, they will also constantly release positive news during this process.

‘Teacher, teacher, we are not fools, we just won’t take over, right?’

No problem, there are still three tricks left to play.

◆ Conducting so-called strategic financing with the locked coins

Although in a locked state, these coins still have 'value'. They can refinance these coins, equivalent to finding an institution to take over, and with institutional endorsement, it will naturally attract more investors. On the other hand, institutions will also find ways to lure in retail investors.

◆ Selling the locked-up quota

Everyone knows that a coin has two types of market value. One is the total market value, and the other is the circulating market value. As mentioned, coins still have value under lock-up; if they can't be sold in the secondary market, they can be sold in the primary market (our good friend SOL has done this), at a discount, which could be taken over by institutions or retail investors.

◆ Direct on-chain liquidation

I don't know if anyone has played on-chain lending, where the project team directly pledges their coins into the lending protocol to borrow USDT, ETH, or BTC. Normally, you should avoid the 'borrowed assets' being close to the 'pledged assets', which is about 80% in USDT terms; otherwise, you will trigger 'liquidation', and your pledged coins will be liquidated.

Then the project team liquidates at around a 20% discount, effectively selling the coins at a discount. So where did these coins go? Obviously, they returned to the market.

This method is extremely deceptive and hard to guard against.

- So the smart you knows what they are doing, right?