Did you know that there are tycoons with large capitals who know in advance what could happen with the WLD token? This happens because most of the users of this cryptocurrency are people with little experience in the market, and the only thing they usually do is quickly sell their tokens to withdraw liquidity.
This dynamic is taken advantage of by these large capitals, who open over-leveraged operations betting that the price will fall, which generates downward pressure on the market. But what would happen if, instead of selling, we all decided to buy more $WLD tokens and hold them?
If this were to happen, we could cause a phenomenon called short squeeze, where:
1. By increasing purchases instead of sales, the price of the token would rise, causing losses to those who bet short.
2. As the price continues to rise, short traders would not be able to cover their positions, forcing platforms to automatically liquidate their contracts.
3. Liquidations involve platforms buying more tokens at the market price to close these positions, generating even more demand.
4. This process would trigger an exponential increase in price, as each liquidation increases buying pressure, causing a dizzying rise in the value of the token.
Instead of selling, the simple act of holding and buying more #Worldcoins tokens could drastically change the market landscape, weakening the strategy of those manipulating prices and benefiting users who rely on the growth of the asset.