There are thousands of things on the crypto market that we don’t know but we are learning them day by day. We learn and use them wherever the news needs it. Same as the last few days I have learned something about anti dump technology of crypto and why this law and concepts were submitted on different projects. Even i did not have enough idea about it before but as soon as I commented something on @sojib post on noise cash , I come to know there has something about Anti dump technology that concept used on some project to protect the project volatility. So let’s talk about it!
What is Anti Dump?
Anti Dump usually refers to protecting any kind of goods or currency from falling down its value in a sudden. For further explanation, I can say that suppose your country sells gold and the per KG gold rate is around 10000k USDT and someone of your country owns more than 1000KG. So he wants to sell his old gold all at once and dump the GOLD market in a second. So can you imagine it’s impact on the market and how the country's stock market will be changed for GOLD?
For this reason anti dump concept is submitted on different projects and on different stock markets goods. Because when any kind of goods or project runs under Anti dump technology , the goods or projects whales or holders need to hold their all holding for a time period. And the time period can be up to years to years just to ensure the project's future.
As far as I know this law was created in 1960 to protect different stock markets goods. But recently this project is now adopting a crypto project too. Let’s talk about it too.
Some time we saw on the crypto market that some coin prices went higher up to 1000% within a day and down to -1000% within a day. And to protect this solution , different project team management managers bring the concept of Anti dump technology that will ensure the investment of project whales. Suppose , if you look at smartBCH project CLY, they have used the anti dump technology on their project and according to the news, I came to know that they ensure their 75% investor token will be locked for years. They did this because they don’t want CLY investors to sell their all tokens at once and dump the market like Squid game token.
Can you remember the Squid game token price? It went higher up to 2000 USDT plus from a few cents. But later it went down to less than one cent. But why does this happen? This happened because there were no rules about locking the token of investors. So investors get the right price to sell their token and sell all at once.
For anti dump technology project example, I can say about THUNDERCAKE and DRUGDOGE project because according to their project rule, their 0.1% token of total supply will be locked for a time period, just to avoid the sudden dump. And this makes their project more reliable to their investors.
Same thing of CLY project launched under smartBCH chain.
I hope you have understood guys, how the anti dump technology concept helped the crypto project from big loss.
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