#PI# This is the reason why the PI continues to experience downward movement!

I have a friend who is a dog dealer.
A few days ago, I complained to him: you market manipulators!
Make an ENA lock-up pledge, and it starts to plummet after the pledge.
It takes a week to withdraw coins, and I haven't seen any rewards, although the capital occupation ratio is not high.
But shamelessly cut me off, playing like this in a bull market, aren't you afraid the project will die?
My fren shared some valuable insights with me to comfort me.

He said: I don't know if you have noticed the new coins on Binance.
Most new coins have a very obvious trend.
The price drops for a few days after going live, then quickly surges.
Soon after, it entered an infinite downtrend mode.
This is the new coin distribution method for market makers this year.
Why play like this?
Because the market maker didn't make a big profit from the previous surge, they must take advantage of the volatility to launch projects and cut some funds for future needs.
There are the following three steps:
Step 1: In the first week of going live, let the retail investors who staked BNB to receive airdrops sell first.
Basically within a week, those who farm staking rewards and are not planning to hold coins for the long term will have basically exited. At this stage, market makers will not support the market.
The several market makers of ENA are even more ruthless, directly staking the native currency and giving it to other airdrops, just to reduce retail liquidity and better manipulate the coin price in the future.
In the second step, it is time to sell, but right now there isn't enough retail investor capital to take over in this market.
So while staking, the market maker also needs to rely on contracts to sell.
A typical approach is to quickly pull off a big wave through spot trading,
Usually in a day or two, it suddenly rises by half or even doubles, but the price usually does not exceed the previous high.
Even if it exceeds, it won't exceed much; the goal is to prevent the first batch of people who bought in at the opening from having the opportunity to exit.
It doesn't take much to leverage this wave of price increase, as retail investors already don't hold many chips, and the rise happens quickly.
After the surge, you will notice that the holding volume of this token contract suddenly skyrocketed, and then the contract's rate started to turn negative.
This phenomenon basically means that market makers have started shorting contracts.
The third step is for the market maker to keep selling spot.
Although cashing out on spot doesn't yield much, the contract gamblers have provided enough exit liquidity for the market makers.
In these three steps, what you can do as a retail investor is actually only the third step:
Short with the market maker (dividing the position and using low leverage)
At other times when you're free, you might suddenly get blown up one day.
By choosing to go long, it directly became the exit liquidity for the project party.
To seize such opportunities, one must be relatively sharp; market makers will not maintain high prices for more than two or three days.
If a coin suddenly jumps dozens of points in one day, keep an eye on the open interest and rates of the contracts on coinglass.
When open interest surges and the rates start to decline or even turn negative, it indicates that the market makers are building short positions.
Look at how Pi coin, banana, io, are all moving like this,
So I hope that the next time you see a newly launched coin, when it suddenly surges in a day or two,
Please first think about the market maker starting to sell off, and don't worry about whether the market manipulator is going to pump the price, or whether it's time to go all in and chase the rise.
After listening to this speech, I was schooled by a market manipulator, and it was quite expensive!
Share with everyone, a gift for those destined to receive it.
#BTC # #ETH# #SOL#