Major players (whales) employ tactics to profit by trapping regular users (hamsters). But how does this work?
Let's take the meme-coin Pepe as an example:
1️⃣ Pepe lists on #Binance at its peak value. Why?
2️⃣ This generates trading volumes, enabling whales to sell their Pepe tokens. Other exchanges lack sufficient liquidity. Binance's listing attracts attention and liquidity.
3️⃣ Futures contracts are launched.
Futures contracts deliver the asset at an agreed price and time. The buyer must repurchase the subject.
Now, visualize the profits from these actions:
4️⃣ Whales enter futures and leverage short positions.
5️⃣ They sell their Pepe tokens on Binance.
What's gained?
Simultaneous short positions and disposal of holdings. Imagine the potential profits!
✅ Dispose of holdings.
✅ Profit from short selling.
Do you grasp the concept? Selling holdings while ensuring a profitable short position.
Ingenious! That's it.
Leave a 🔥 and follow if you're interested in such schemes too.