#IKA# Serious imbalance in supply and demand and market manipulation


Liquidity Locking Mechanism: New coins often limit circulation through design such as staking mining and lock-up rewards, for example, only releasing a small amount of tokens to the market. At this time, a small amount of buying can drive up the price, forming a "low circulation + high market value" distorted structure.

Market Maker Control
Project teams or early investors create false liquidity by controlling the depth of the exchange order book. Typical manifestations include:

The difference in trading order volume levels is significant (e.g., sparse sell orders).
Price fluctuations show a "stepwise slow increase" 2
II. Market Manipulation Behavior
Whale account control
When a small number of addresses hold most of the tokens, they can do so through:
Left hand trades with the right hand to manipulate the market.
Leverage low liquidity to amplify price fluctuations
Options leverage effect
When the open bullish contracts are concentrated at expiration, market makers need to hedge risks by buying in the spot market, forming short-term price support. This phenomenon is significantly amplified in low liquidity coins.
Risk Warning: This type often comes with severe pullbacks, the option expiration date for Bitcoin in May 2025 once led to $657 million in long liquidations. The volatility of low liquidity coins can typically reach 3-5 times the normal level.
IKA-3.27%
BTC-0.42%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 3
  • Repost
  • Share
Comment
0/400
ZhiXiaqiuLingvip
· 17h ago
Agree, it feels like the liquidity is so poor and the rise is still a problem.
View OriginalReply0
GateUser-0d670496vip
· 17h ago
Let's expose the dog trap scam project together!
View OriginalReply1
View More
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)