The cryptocurrency market is not just an opportunity to earn, but also a place for manipulation. Whales 🐋, market makers, and even exchanges actively use various schemes to profit. Here are real stories:
1. Pump and dump 🚀📉
In 2017, the BitPetite token was pumped by a group of traders and then sharply crashed, leaving small investors with losses. The token became a vivid example of 'pump and dump', where the price rose by 1000% and then fell by more than 90%.
2. Spoofing 🎭
In 2018, the cryptocurrency exchange Bitfinex faced accusations of spoofing, where buy and sell orders worth millions of dollars were placed but not executed, misleading the market. This affected prices and led to liquidity manipulations.
3. Liquidation wipeout 💥
In 2020, several major manipulations were recorded in the bitcoin market, where prices were intentionally driven down, liquidating traders with 100x leverage, leading to sharp price drops and recoveries. Such actions push inexperienced investors toward forced liquidations, while large players buy assets at reduced prices.
4. Fake news 📰❌
One well-known case occurred in 2018, when information about the 'possible acceptance of bitcoin at the state level' was spread through social media, leading to a short-term price increase, followed by a drop when the news was refuted.
How do large players influence the market? 🐋💰
Whales are large investors who hold significant amounts of cryptocurrency. Their actions, such as mass buying or selling, can greatly fluctuate the market and create volatility. Through these manipulations, they profit while leaving traders with losses. This can be both artificially created price increases and sharp declines that force margin positions out.
Trader psychology: how emotions affect the market 🧠💥
Manipulations often work through traders' emotions. Fear and greed cause investors to make hasty actions. For example, when asset prices rise sharply, traders may start buying without analyzing the market. At the same time, panic during a drop can force them to sell at low prices. Emotions become a weapon for manipulators.
How to protect yourself? ⚠️
1. Do not use high leverage. This will help avoid liquidations that are often exploited by manipulators.
2. Monitor the volumes and liquidity levels. This will help identify false movements.
3. Check news sources. It is important to avoid fakes and rumors that can affect prices.
4. Don't trade on emotions. Develop your strategy and stick to it to avoid succumbing to panic.
In the cryptocurrency world, it is important not only to react quickly to changes but also to distinguish manipulations from real trends. 🚀💡$BTC