Many people often have misunderstandings about the market maker's washing behavior, and generally believe that its purpose is only to seize chips from retail investors. However, the real intention of the market maker's washing is far more than that.
The core purpose of the market maker's washing is to pave the way for future price increases, and to create conditions for the stable rise of the market by reducing selling pressure and reducing operating costs. The market maker is not inclined to absorb chips at high levels, but is more willing to gradually withdraw funds during the process of pulling up to maximize profits.
The implementation of the washing strategy is to scare out those investors who easily sell out due to panic, and at the same time attract those who have a deep understanding and firm confidence in the project. These investors bravely enter the market during the market downturn, showing their optimism about the long-term value of the project, which is in sharp contrast to those chips that are only chased in the short term because of price increases.
The market maker's washing is actually a carefully planned market screening, which aims to eliminate those unstable short-term speculators and consolidate the investor base who are truly optimistic about the prospects of the project. Through this process, the market maker not only optimizes the market structure, but also lays a solid foundation for future market development.