Analyzing The Major Crypto Market Manipulation Techniques

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INTRODUCTION

They are a number of ways the cryptocurrency market is often being manipulated, some actions by people are done to influence price to their own advantage often at the detriment of others.

Today I will be sharing some of the common market manipulation techniques known to us in the cryptocurrency market, so let's quickly get into it.

SOME CRYPTO MARKET MANIPULATION TECHNIQUES

PUMP AND DUMP SCHEMES

One of the aged technique in the book when it comes to cryptocurrency market manipulation technique is actually the famous pump and dump scheme.

This is done when group of people come together and raise the value of a coin much more than what it ordinarily should be worth by buying in on it massively infact to achieve this they not only buy but try to make others buy too and they often so this by spreading false information about that coin making people see value where there is nothing in through any one of the different social media platforms.

They can buy a coin and most times it has to be a coin with considerably low volume, they come together and buy it at an aggressive level and not only buying in they might even first spread lies about the true value of the coin and to better sell that lie they aggressively buy in driving price of that coin up making people to fomo in believing it especially seeing rhe positive response of price as a result of their aggressive buying then when they have gotten many to buy in and by then price would have gotten to much higher levels they pull out.

At this time they remove or sell off their massive holdings in profits while the rest of those that entered in suffers great losses, this is one of the wicked Market manipulation technique in the book.

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SPOOFING

This is more like a move with deceptive intent, most times people are led into buying or selling a coin just by seeing huge demand orders for that coin, now this has become known that it's now being used as a ploy to manipulate the cryptocurrency market.

Some could stack up their others possibly in millions of dollars for that coin making people feel the demand for the coin is high and this leads them to rush in and buy the coin leading to a volatile price movement now what these spoofers do is that if they had wanted the market to go up they would place a buy order and when everyone start buying in and market is moving according to where they want they immediately cancel their orders, hence it's a manipulation to create demand or supply of a coin based on false hope for their own gain.

WHALE MANIPULATION

Well we are all too familiar with the whale market manipulation, buy or sell with their huge and massive funds when they buy in they create euphoria and when they are selling they create panic so whether they are buying or selling people react to them immediately because of the insane amount they boost no one would want to trade against that.

Now how does a whale manipulate the market?

Let's say they they are invested in a coin but want to accumulate at a lower price level, they could easily dump the massive holding of theirs in that coin and what happens it that price would drop down rather sharply and to a price they want to accumulate at and then they but in and this works so well since alot of people follow whales activities making it all too easy for them to manipulate the cryptocurrency market.

SOCIAL MEDIA AND INFLUENCER MANIPULATION

The social media has become a perfect platform for creating market manipulation often some influencers spread rather false information about cryptocurrency most times this is done on a purpose as they seek to engineer pump and dump.

When a major influencer let's say on Instagram or ticktock or X post something their massive followers or subscribers do so and what most do is they can post about the coin they had earlier put their money in and when the spread it across social media many will start buying the coin and when this happens and price has gotten to an acceptable level, they sell off often leaving their members holding the proverbial bag.

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CONCLUSION

Well if we are starting off in cryptocurrency or been here for a while then we should watch our selves well and ensure we are not ignorant of some of this market manipulation technique, it doesn't hurt to be properly informed