EOS, what a rise and what a pull back!!
yesterday,EOS peaked to $6.30
3 -4 times higher than crowdsale market cap ( 650,000 Ethereums)
Today, it has pulled back to $3.14
EOS could a game changer, best of the best.
What we also saw, Take a look:
Source:https://coinmarketcap.com/all/views/all/
pump and dump? How it works?
As soon as it hit the exchange, big fish start buying parcels (shares/coins), as they already know how much out there to soak up in the market.( THEY ALREADY OWM MEJORITY OF THE MARKET CAP). They contineously buy every bit of sale from minor investors, eventually sellers thin out. Then comes a time when too many buyers waiting up but whales are the ones to decide what price to sell. ( Thats the peak; EOS hit $6.30 yesterday)
Now the whales got all parcels.
Say whales initial investment was 50 million/25% of total market cap.
Whales bought another 50 mill during buying frenzy while spiking the price ( pumping )
raising their stake upto 50%/ 100 mill coins/ shares
During this pumping cycle, price gone up by 400% .
For whales in order to recover their initial investment + pumping cost, say, needs to sell 100/3= 33.3%
Now whales start off-loading 33% of their stake , by this time, the hipe is all time high. So there are buyers stand by to catch on pullbacks. (THESE ARE DESPERATE BUYERS WHO ARE KICKICKING THEIR FEET FOR MISSING OUT THE TRAIN)
but this time very cleverly whales offload their first 33% of parcel. Since big buyer turns into seller, price comes down significantly.
( apply this)
Now the whales have offloaded their 33%. They recovered all initial investment backs and almost 70 percent free parcel for a free ride.
they control the market, execute in such a short span of time, its difficult to notice( high frequency trading)
In case of EOS, price stablizing still at around 200-300% on the upside. the game has not finished yet, next 700 mill token sale will be pressing "Repeat button".
Regarding technology, whales always choose good ones to masqurade themselves well behind this.
use of method:
inter-party buy and sell
use of algos ( high frequency trading)
HIGH CAPITAL
Vested interest of whales is to eat minnows...best technology hipe could also be a prawn( bait). Protect ...play safe
Profit taking on these ICO's can kill the coins - like an IPO in stock market when the CEO's and executives cash out into momentum.
Your are right..Pump& dump game is even easier in crypto world.. just big capital and hype....
I am expecting an eventual consolidation of the crypto market and the emergence of a new coin that draws on the aspects of there very best available in the market. Transactional - Productive - Transference of Value - Privacy
Going through a rapid trial phase, might consilidate somewhere to fair few. Yes, those four points you mentioned are the keys.