Many cryptocurrency trading data is manipulated, especially on Dexscreener, where many meme coin statistics are fake. This article details how developers use fake trading volumes to attract investors and shares ways to identify these fraudulent methods to help you avoid traps and protect your funds.
If you are not aware of these scams, you can suffer serious losses in the world of cryptocurrency, especially on platforms such as Dexscreener. Most meme coins have fake trading data, and developers manipulate trading volume and the number of holders to attract investors and make huge profits.
Part 1: How developers manipulate data
Developers manipulate the number of token holders and transaction volume in three main ways:
1. Personal trading operations (worst effect)
2. Cooperate with friends (moderate effect)
3. Automate operations using thousands of wallets (most effective)
In particular, the third method uses servers, node validators, and financial support to run automated scripts around the clock to simulate huge transaction volumes. Now, anyone can easily achieve this control through public robots on Telegram.
Part 2: How to recognize these manipulations
While tools like Bubblemaps can make it difficult to reveal these manipulations because these wallets are usually independent, you can identify them by:
1. Observe the activity of the Telegram group: large trading volumes should generally correspond to highly active communities. If there are few messages in the group, it may mean that the trading volume is artificially increased by robots.
2. Check the buying and selling records on Dexscreener: Robot trading usually repeats the buying and selling operations of the same amount.
It is not difficult to identify fake trading volume. Just be vigilant and observe irrational trading behavior to avoid falling for scams.
in conclusion:
Fake trading volumes and manipulation are common in the cryptocurrency market, especially on platforms like Dexscreener. Developers falsify data to attract investors, but you can identify these scams by observing community activity and trading patterns. Understanding these tactics is crucial to help you avoid being deceived by manipulated tokens and protect your funds from loss.
