A Big Pump Is No Big Deal
Mar 18, 2022
If you look at the fastest-growing coin on exchanges on any bullish day, you’ll see what seems like completely insane, irrational growth. If you zoom out the time scale a bit, the story changes. In this case, the coin launched with a truly ludicrous price pump followed by violent dump, and then a sustained period of attrition, eventually evening out at around 2% of its all-time high. Suddenly, the price has a little bump! What caused it to 10x in 2 weeks?
The answer turns out to be a volume of buying on exchange that you and a few of your friends could probably manage by yourselves: a daily trading volume of a million bucks. That’s how easy it is to manipulate prices in crypto.
