When the overall market drops 5%, PepeCoin can drop 10% or more. If the market falls 10%, Pepe plummets 20%. And when the market rises, the whales create false growth, incentivizing novice investors to buy more Pepe, then sell en masse and switch to other cryptocurrencies, thus perpetuating a cycle of instability.
Different articles have been warning about this behavior, plus its technical analysis, which is not detailed here due to the number of characters this publication allows. (see annexes).
Procedure
1)Generation of Purchase Orders:
Whales generate large buy orders, visible to everyone, in the trading data. On any exchange, such as Binance, purchase orders can be observed in large quantities, simulating large imminent acquisitions.
2) They execute Retail:
Novices, beginners and buyers of small amounts, known as retailers, make most of these purchases in small but high volume, motivated by the hope that a big jump in price will soon come, generating a significant number of acquisitions. (Shopping)
3)Sale and Exchange to BTC:
The whales then calculate the optimal time to trade between BTC and Pepe, selling their PEPE and switching to BTC or other stronger cryptocurrencies such as Solana and BNB. Pepe is done! in each target o,oooo13, 0.000014 , it is estimated that up to 0.000015 large outlets.
In the dominance of btc DOMUUSDT, that is, they use the coins (read full article)
