Today, let’s review the 6 tokens that DWF Labs has marketed in the past two months, and what are the patterns in the price trends.
In a bear market with insufficient liquidity, market makers have become an indispensable role, such as providing project liquidity, increasing market depth, and activating the market.
Although DWF Labs, which is both a market maker and VC, achieves the purpose of invigorating the market and increasing liquidity, its violent pulling and smashing style has also caused controversy.
Because their style is obviously different from other market makers, they are even suspected of manipulating the market. The following divides the price impact of tokens that DWF has participated in market making into two categories:
The impact on the price of DWF’s on-chain wallet transferring tokens to the exchange;
The impact of announcements of cooperation to assist project market making on prices;
the first sort
Category 1 (2)
The following figure is used as an example with on-chain transfer records:
DWF Labs moved to Binance after the second wave of gains in DODO and PERP, and then the price turned down, eating up most of the previous gains.
Category 1 (2)
And the same goes for YGG and Cyber price action.
But the difference is that after the first period of price increase of YGG and Cyber, DWF Labs transferred the tokens to Binance.
Then it hit a second wave of new highs before falling sharply.
Category 2
Next, let’s look at the price trend after the cooperation news was announced.
As can be seen from the chart below, the price trends of MASK and APRA are completely different. It can be seen that the price trend brought about by bullish news is not as regular as transferring chips to the exchange.
How to apply?
After discovering these patterns, you can observe which large amounts of tokens are held by the DWF Labs wallet. When these tokens are transferred from the chain to the exchange, combined with data such as OI, spot and contract trading volume, you can roughly speculate on the possible next steps. trend.
However, it must be noted that although history tends to repeat itself, there is no guarantee that past events will be replicated 100% in the future. DWF may also take advantage of the weaknesses of human nature and attack you when you think the same events are going to happen again.
Therefore, once there is another large on-chain transfer in DWF Labs, trading strategies can be formulated based on price trends and data, and risk control can be done.
