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RE: Whale Games: Hiding Value Underwater

in LeoFinance3 years ago

But what´s the points of fake-increasing the market cap, if that whale will never be able to get out of that asset without dumping back that token? Yes, on the paper the market cap looks great, but as soon as he sells big, the low liquidity will immediately lead to a crash.

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Well if it was a pump and dump, the idea is to get others to jump in so that the stake could be unloaded.

The point of the article is not that he was doing it to raise the market cap. It was simply an outcome of buying so much of the whole.

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That's the effect of low liquidity. Perhaps faking the Market Cap would invite other investors to buy in. It's high time many drew value out of Crypto beyond the price and market caps.

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Yes, but if you want to sell those quantities, the opposite effect takes place and you won´t be able to sell for that higher price, because during selling the price will go back.

If liquidity is close to non-existent in the small pond, it's not really worth dipping into that small pond.

It also helps to know what's in that small pond to begin with. I still don't know how to determine how much liquidity is present for any transaction I want to make at LeoDex. Is it at simple as checking the info widget, or is there some calculation I need to make?

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