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August 09, 2023

The DWF Labs Market Strategy: Pump and Dump of Crypto Tokens

In a volatile world of cryptocurrency, where fluctuations are the norm, DWF Labs seems to be orchestrating a new play. It’s crucial to understand these market moves, especially when significant money and investments are at stake. Let’s unpack the recent events surrounding the $C98 coin and draw insights from similar previous trends.

The DWF Labs Market Strategy: Pump and Dump of Crypto Tokens

The New Market Meta: A Combination of Strategies

Several key components mark this new trend:

  • A partnership between MM and DWF Labs
  • The introduction or change in futures conditions on Binance
  • Noteworthy volumes and growing interest in futures

An old adage comes to mind: “What goes up must come down.” The trend observed is similar to a fairytale carriage turning back into a pumpkin post-midnight. A token’s value is artificially inflated (the pump), only to be devalued once the market maker withdraws (the dump). The $YGG coin’s journey from 0.17 to 0.99 and back down to 0.35 is a testament to this phenomenon.

Market makers, with strategies reminiscent of Alameda, seem to be trying to inject some vitality into the CEX, where Ethereum has witnessed little price movement for months. Bitcoin’s price too remains somewhat stable, with occasional deviations within the $100-200 range.

The Impact: Impressive Figures in the Cryptosphere

Binance’s metrics showcase the magnitude of these actions: a whopping $1.475B in futures turnover, a 36.5% surge at $C98, and an open interest of $45M.

The market manipulation is evident in the disparities between open interest and capitalization. While Binance displays a $65M open interest, the current capitalization stands at $107M. Astonishingly, the trading volume on Binance overshadows the current cap by 13 times.

Furthermore, the YGG token’s volatility was exposed when a considerable divergence between spot and futures emerged. This disparity reached its climax after a 30% reduction between the two.

The $C98 situation unfolds rapidly, with its outcome still uncertain. This scenario reminds everyone to make informed decisions and brace for unexpected shifts in the cryptocurrency landscape.

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Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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