Major players (whales) employ tactics to profit by trapping regular users (hamsters). But how does this work?
Let's take the meme-coin Pepe as an example:
1ļøā£ Pepe lists on #Binance at its peak value. Why?
2ļøā£ This generates trading volumes, enabling whales to sell their Pepe tokens. Other exchanges lack sufficient liquidity. Binance's listing attracts attention and liquidity.
3ļøā£ Futures contracts are launched.
Futures contracts deliver the asset at an agreed price and time. The buyer must repurchase the subject.
Now, visualize the profits from these actions:
4ļøā£ Whales enter futures and leverage short positions.
5ļøā£ They sell their Pepe tokens on Binance.
What's gained?
Simultaneous short positions and disposal of holdings. Imagine the potential profits!
ā Dispose of holdings.
ā Profit from short selling.
Do you grasp the concept? Selling holdings while ensuring a profitable short position.
Ingenious! That's it.
Leave a š„ and follow if you're interested in such schemes too.