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SPOOFING TO SIMULATE PRICE FALLS IN CRYPTOCURRENCIES

WHAT IS IT

Spoofing is a market manipulation where fake sell orders are created to simulate a drop in the price of a cryptocurrency, inducing panic and mass sales.

HOW IT WORKS

Large investors, known as whales, place large sell orders, creating the illusion of high supply. When the price drops, they cancel the orders and buy the assets cheaper, profiting from the recovery. This practice is common in markets with low regulation and liquidity.

Remember: understanding market movements and their manipulators is essential to avoid being influenced by deceptive strategies.

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