VCs issue air coins without restraint, and the MEME market becomes the "last paradise of crypto wealth"? Faced with the rampant issuance of air coins by VCs in the crypto market, investors have flocked to the MEME market. However, the MEME market has also been hit by FBI fishing enforcement recently. The US SEC, FBI and other departments jointly launched an investigation and filed lawsuits against crypto companies and market makers suspected of manipulating the market, such as Gotbit, ZM Quant, CLS Global, etc. Many related persons have pleaded guilty, and the market is shrouded in shadows. FBI law enforcement reveals the chaos of MEME The FBI lured many market makers to participate in manipulation by creating a fake project NexFundAI. Projects such as Saitama and Robo Inu raised the price of coins through false transactions and wash trading, and finally cashed out at high levels. This action shows the determination of regulators to crack down on fraud in the crypto market and also rings a wake-up call for investors.
How should investors learn from this?
The incident shows that market manipulation is still rampant, and investors should remain vigilant when identifying strong market makers' MEME tokens. Investors should avoid being misled by false propaganda and manipulation by analyzing key factors such as the transparency, practical application and community participation of the project.
Self-cultivation of leeks: How to identify strong MEME coins?
To determine whether MEME coin is manipulated by a strong market maker, you need to pay attention to the following signs:
Abnormal price stability: When the market is turbulent, if the price of a currency is abnormally stable, it may be that market makers use high-frequency trading to maintain the price.
Sustained high volume: High volume without noticeable fluctuations may indicate wash trading, which is the process of creating false impressions through artificial activity.
Deep order book: A large number of buy and sell orders close to the current price maintain liquidity, which is usually a means for market makers to avoid drastic price fluctuations.
Price divergence from market trends: When the price of a currency moves in the opposite direction of the market and there is no reasonable explanation, there may be manipulation.
Abnormal trading patterns: continuous rise without pullback, or stabilization after a sharp rise, may be the result of human intervention.
Frequent whale activity: Frequent large transactions may be the behavior of large investors or market makers, especially when accompanied by price manipulation.
Warning signs before a crash:
Declining trading volumes: When market makers withdraw, liquidity dries up and can trigger price declines.
Thinning order books: A sudden decrease in order book depth, especially on the buy side, can be a sign that support levels are being removed.
Large sell orders emerge: Big players may exit the market through low-price sell orders, indicating that prices may fall.
High financing rates in futures markets: When leveraged positions are too high, a rapid decline in interest rates may signal liquidation and market corrections.
Social media and community sentiment shifts: A clear deterioration in sentiment or a sudden silence from KOLs could signal upcoming market volatility.
Unusual withdrawal patterns: Large withdrawals from exchanges may indicate that large investors are taking profits before a crash.
Regulatory or legal risks: External factors, such as regulatory crackdowns or legal issues, could trigger a sharp drop in coin prices.
Technical indicator warning: RSI overbought or indicator divergence usually suggests that a trend reversal is imminent.
By paying attention to these signals, investors can better identify strong MEME coins and avoid risks.
summary
This enforcement action once again reveals the chaos in the crypto market. Every round of leeks will encounter their own "Luna and Three Arrows Capital", and speculators, in the MEME wealth carnival, even if they are aware of the problems, always hold the fluke mentality that they will be the lucky ones.
This incident reflects the current situation of the crypto market - it is no longer realistic to rely on liquidity like in 2021. With the performance of the US economy and inflation, it is difficult for the market to usher in a similar flood of funds in the short term. The crypto industry needs to return to the project itself, get rid of the excessive influence of capital, and usher in new opportunities by compressing the core and enhancing vitality.
It is particularly important for investors to learn more analytical skills and make every investment decision carefully.
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.
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