Cryptocurrency pumping, which is the act of artificially manipulating the price of a specific cryptocurrency, has attracted much attention in recent years. This strategy creates market volatility through rapid buying and selling, attracting more buyers to the market, thereby pushing up prices. Motivations include profit making, influencing market sentiment and publicity. However, pumping also carries significant risks, such as price volatility, market manipulation investigations and reputational damage. Therefore, investors should exercise caution and fully understand the related risks when participating in the currency market.
The currency circle is rising: market manipulation or reasonable speculation?
An article introducing the currency circle rally
What is the currency circle rally?
Coin pumping refers to artificially raising the price of a specific cryptocurrency, usually by individuals or groups with large positions or influence. By buying quickly or selling in large quantities, they can create market volatility, attracting more buyers and further raising prices.
How to promote the currency circle?
The strategy behind the rally is to manipulate the balance of supply and demand. By placing large buy or sell orders, traders can create the illusion that the market is illiquid, causing prices to rise or fall. This is usually performed through an exchange or over-the-counter trading platform.
Motives for rising prices
Motives for rising prices can be diverse:
Risk of pull-up
Although pull-up may bring short-term profits, it also carries significant risks:
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