Conspiracy Theory - Price Increase When Tokens Are Delisted?
The community is buzzing about the phenomenon of the token price increasing sharply right after news of its delisting. Here are two major conspiracy theories I've gathered:
1. From the Project Side: As you know, being listed on Binance is not simple. Binance has very high requirements regarding legal procedures, costs and many complex contract terms. Being accepted by Binance to list is difficult, but maintaining your position and avoiding being delisted is much more difficult. Some people believe that projects can use many measures to maintain token prices, such as creating positive information or mobilizing the community to put pressure on prices. This way, they can maintain Binance's attention and avoid being delisted.
2. From Binance: Another theory is that Binance can manipulate token prices through delisting. When there is news of delisting, the token price often drops sharply. Binance can take advantage of this time to buy at low prices and then sell when prices rise again. This cycle can repeat, creating a habit in the community that delisted tokens still have the potential to increase in price sharply. This leads to users being tricked into a price spiral with no way out and can end up suffering heavy losses.
🤩 Note that these are just conspiracy theories and there is no specific evidence to confirm. Read and consult, but make your own investment decisions.
DYOR. Please trade responsibly.
