Lately there is a strong trend in games pump & dump from WSB. In my opinion, this is just a pump dump like before, thanks to the GME trend, a new breakthrough has been made. Very HOT and maybe a short term trend, but in the long term the pump & dump always exists.
What is WSB?
So what is the reason for WSB trend? You can read it here: https://blogtienao.com/wallstreetbets-la-gi-cuoc-chien-giua-nha-dau-tu-ca-nhan-vs-quy-dau-tu-lon-bat-nguon-tu-dau/
Therefore, if anyone understands its running method, perhaps they will earn some sweet "cane". If I don't understand, just eat SHIT soon.
Operation principle of PUMP & DUMP
The way it runs is based on the old principle, it allows its brothers (vip association or admin association) to gather certain lowcap coins (usually above Binance). After finishing it, it will create a fomo like "Million dollar contract will be public in 9 hours, please turn on notify ..."
And create continuous fomo when they finish gathering, and pumppp… .. the fomo emo jumps so the price of coin increases 100-300%. And those admins successfully took profit.
The result is:
- The admin and vip mem group has a big profit and wait for a new round.
- Some of you quickly take 50-100% profit.
- Some of you get swing sml, cut holes to prepare new rings.
It's just that cash flow. For example, there is $ 5 million according to the following rate on that ALT coin (that 5 million comes from group owners, vip members, and investors who follow their channel on twitter, telegram)
- Group owners in 1 million, equivalent to 20%.
- Vip member into 1 million, equivalent to 20%
- NDT follow the channel to 3 million, ~ 60%.
After the pump dump is completed, then:
- Group owner earns 2 million, ~ 40%
- Vip mem earns 1,5 million, ~ 30%
- NDT follow-up earns 1.5 million, losing 50% mother (in this group there are people who lose money ...)
So, only when you understand, can you play. This is MONEY GAME, it's a gamble. The above numbers are only estimates and examples, just for you to understand. In each specific case, it will be different. In the end, you do not know that you will TAKE only!
STANDARD Investment Principles
The best investment principle is to find the core values of real-life projects. For example LINK, ALPHA, COMP, AAVE. This requires us to learn a lot over time, through research papers, market data, fundamental analysis, team, vision, ...
Getting rich fast is always risky, that's the rule!
If you already understand pump & dump rule. Then it is up to you to decide to play or not. Maybe you think you will calculate it quickly and carefully, then give it a try. If you're scared, it's best to just ignore it.
Hope this article helps those who do not know somewhat. For those of you who know, you can give me suggestions so that I can correct them to help the community have a more standard look.