[Data Analysis]——FET's Trading Logic
Today, a new column is officially opened, mainly for on-chain data analysis of tokens. Let's analyze the first token FET first
FET is an AI project in which DWF participates in trading. It has seen a huge increase some time ago
First, let me briefly introduce DWF. DWF tokens are very famous market makers. Their trading wallets are mainly multi-signature wallets, so all activities on the chain are fully open. For data analysts, they can rely on DWF's position logic to buy tokens and wait for DWF to trade
The trading logic of traditional market makers is divided into three steps:
1. Discuss with the project party to obtain the tokens to be traded
2. Determine the trading time point. The exchange wallet is responsible for raising the token price with USDT, and the on-chain wallet is responsible for withdrawing the tokens it holds to the exchange for sale (because on-chain transactions are not very friendly to large-scale altcoin transactions and are easily clamped, so market makers will enter the exchange to sell)
3. After the profit-taking is completed, the token price is stretched, the market maker flees, and the token is in free fall in the later stage
The first step (determine the trading token)
Let's first check FET and DWF market maker token communication method:
It can be found that the communication between FET tokens and DWF mainly comes from 4 on-chain wallets, and the exchange where DWF sells is An An
Step 2 (DWF obtains FET tokens and prepares to trade)
First adjust the time to understand the time point when DWF market makers obtain FET tokens:
We found that DWF does not have FET tokens from January 1, 2023
Adjust the time again:
We set the time period from January 1, 2023 to January 1, 2024. We can find that DWF has a large number of FET tokens in its wallet on January 1 this year, so the FET tokens in the DWF wallet were ready before December last year
Step 3 (Start trading FET)
When the time came to January, the price of FET tokens took off, and at this time there were already a large number of FET tokens in the DWF wallet:
The next interesting thing is coming , we found that since January, the millions of FET tokens in DWF's hands have become 10 tokens today
This is because the FET tokens in DWF's hands have been sold out in An'an, and when it was sold, the price of FET tokens took off
Moreover, the on-chain data shows that the FET tokens in DWF's wallet have entered the An'an exchange in the past three months
At this point, the price of FET tokens took off, DWF completed the operation of FET tokens, and it no longer had FET tokens
The above is the operation logic of DWF. Let me summarize it. DWF is responsible for raising tokens in An'an's wallet, and DWF's public wallet is responsible for selling tokens. Since the price of the FET tokens they hold is very low, they will make money, and the last ones to take over are leeks
Therefore, it is recommended that you do not blindly buy directly when you see which token takes off in the market. Only by understanding the capital dynamics behind it can you avoid becoming a leeks that are cut.
