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:

1๏ธโƒฃ Pepe lists on #Binance at its peak value. Why?

2๏ธโƒฃ This generates trading volumes, enabling whales to sell their Pepe tokens. Other exchanges lack sufficient liquidity. Binance's listing attracts attention and liquidity.

3๏ธโƒฃ 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:

4๏ธโƒฃ Whales enter futures and leverage short positions.

5๏ธโƒฃ They sell their Pepe tokens on Binance.

What's gained?

Simultaneous short positions and disposal of holdings. Imagine the potential profits!

โœ… Dispose of holdings.

โœ… Profit from short selling.

Do you grasp the concept? Selling holdings while ensuring a profitable short position.

Ingenious! That's it.

Leave a ๐Ÿ”ฅ and follow if you're interested in such schemes too.