Hello Binance Square community! 👋
The cryptocurrency market is an exciting world full of opportunities, but it is also a market that can be heavily influenced by large forces and people who have the ability to move prices. We often call them "whales" who own large quantities of a specific currency, and **"influencers"** who have a huge fan base listening to them.
These people, whether intending direct manipulation or just by the huge influence of their words and actions, can cause very rapid price movements that make many small investors (who are trying to catch the wave) lose a significant portion of their money.
How does this manipulation or significant influence happen?
There are various methods, but one of the most dangerous for small investors is when a strong and sudden wave of enthusiasm is created that drives the price of a specific currency up rapidly (often called Pump), and then, when the price reaches its peak, those who created the Pump (the whales and early influencers) quickly sell everything they have (called Dump), which causes the price to crash almost as quickly.
A very real example: The story of the TRUMP coin and a post on X! 🖼️💥
Do you remember the buzz around a currency called TRUMP? This is a very vivid and impactful example of the power of "influence" and how it can turn into a price movement that costs many people.
What happened is that a very influential figure worldwide (former US President Donald Trump) posted a picture on his account on the X platform (formerly Twitter) that was somehow related to this currency (likely a cover related to the currency or a post that indirectly talks about it)
.
What was the immediate result?
Once this image was published, the price of the TRUMP coin witnessed a terrible and sudden "explosion" in price! Why? Because millions of followers saw the post, generating a huge excitement (FOMO - fear of missing out), and a large number of people started buying the currency quickly in hopes that its price would continue to rise and they would earn a lot in a short time.
But shortly after this very rapid rise, the price of the currency fell almost as quickly and very sharply!
And here small investors are affected and their funds are drained!
Who often loses in these scenarios? They are the people who entered and bought the currency when its price was very high (during the "Pump"), driven by the post they saw or the general excitement and fear of missing the train. When the price suddenly crashes, they find their investment value has fallen significantly, and this is what is described as "draining their funds" in these waves of volatility.
Why do many fall into this trap?
* FOMO and greed: The fear of missing out on quick profit opportunities and the greed for large gains blinds insight to risks.
* Blind trust in influencers: Following recommendations or just the actions of influential people without real research and understanding.
* Absence of research: Buying a currency just because its price is rising or a famous person talked about it, without understanding the project (if it even has a foundation) or factors of its true value.
* Hope for quick wealth: The desire to achieve huge profits in a very short time leads people to take uncalculated risks.
How do you protect yourself from manipulation and these influences?
The story of the TRUMP coin is a strong reminder for all of us in 2025:
* Do your own research (DYOR) and then research again! Don't buy a currency just because of a post on X or a trend on social media or a sudden rise in its price. Understand the project, its potential, and its tokenomics (if its foundation is strong).
* Be skeptical during excessive enthusiasm: When you see a currency whose price is exploding unnaturally, this is often not a safe entry time for the average investor.
* Risk management is your loyal friend: Invest an amount you can afford to lose. Don't put all your eggs in one basket.
* Understand the rules of the game: Market fluctuations exist, and the influence of whales and influencers is real. Learn how to identify signs of Pump and Dump.
Market manipulation and leveraging the power of influence are real risks in the crypto world. Protecting your funds starts with your awareness, your research, and your ability to control your emotions during excitement or fear. The story of the TRUMP coin is a very vivid example of this!
Have you faced a similar situation or fallen into a hype trap before? Share your experience so we can all learn! 👇
Important reminder: This article is an analysis of a phenomenon and trend in the market using the TRUMP coin as an illustrative example of how influencers and volatility affect, and not an investment recommendation in any way. The cryptocurrency market is high-risk and requires your own research and careful risk management.
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