When trading newly listed coins, whales can easily manipulate the market because these coins usually have low liquidity and limited trading volume. Here’s how it hurts us regular traders:
1. False FOMO (Fear of Missing Out): Whales pump the price, making it look like the coin is skyrocketing. Retail traders jump in, hoping for
profits, but they’re buying at inflated prices.
2. Sudden Dumps: Once the price is high, whales sell off their holdings, crashing the price instantly. Traders who bought in late are left with coins worth much less.
3. Illiquidity Traps: After a dump, there might not be enough buyers, so traders can’t even sell their coins without taking a huge loss.
In short, whales exploit hype and low liquidity, making it easy for them to profit while smaller traders take the hit. So just be careful and cautious and think strongly before trading with these coins.
MEUSDT
Perp
0.092
-2.74%