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:
1ď¸âŁ Pepe lists on #Binance at its peak value. Why?
2ď¸âŁ This generates trading volumes, enabling whales to sell their Pepe tokens. Other exchanges lack sufficient liquidity. Binance's listing attracts attention and liquidity.
3ď¸âŁ 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:
4ď¸âŁ Whales enter futures and leverage short positions.
5ď¸âŁ They sell their Pepe tokens on Binance.
What's gained?
Simultaneous short positions and disposal of holdings. Imagine the potential profits!
â Dispose of holdings.
â Profit from short selling.
Do you grasp the concept? Selling holdings while ensuring a profitable short position.
Ingenious! That's it.
Leave a đĽ and follow if you're interested in such schemes too.