Have you ever seen those traders in crypto who invest into every random token that is hyped on twitter?
A lot of people are invested into things like safemoon, babydoge etc. None of them knows if those tokens stand for long.
There are developers and the investors into such type of the tokens. They invest into something that has no use case. They create hype, and get some base price for the token.
The moment they see the rise in said token, they take out their stakes. And the coin drops and the owners of the token get rich exit.
A lot of such rug pull coins came out in the crypto.
So does this strategy is another hyper exit or pure rug pull?
Let's talk about it.
Rug Pull is Obvious
If you have ever tried projects like SmartBCH and the various doge related tokens. You would realize that the rug pull effect among them is kind of obvious. And a lot of them turned out to be scam too quickly.
Like smartBCH had most of the useless tokens and they were pumping artificial values. And then the lead developers came out with various fake projects and turns out that was their exit. I won't be surprised if the VERSE is another scam too.
Some things are too obvious in front of our eyes. And we don't understand how to make up our minds about them. It kind of makes us understand later as we see the symptoms.
Hyper Exits common among Whales
There are whales among us who invest too fast. And they also take out the profit too early and too fast. This way they recoup their speed loss too. Something which is not an easy to do thing.
Hyper exits are not easy. I am sure they must be using some sort of the softwares or say bots to make quick trades. Like you invest quickly for specific price and then make exits too quickly.
The algorithm based trading is kind of common for the whales. I know we have some of such whales and they could be doing it here as well. You never know.
The thing is buying and selling is right of every trader and there is nothing wrong with it.
How to find out which is fishy
If you are not seeing any form of a use case, then that is a first sign. Like some sort of the red flag that you would notice. It can get you in trouble if you ignore the symptoms.
Second is you don't see the real team behind. Which is another strong signs that some of the token can be pretty bad rug pulls as they are handled by the anonymous people on Telegram.
Some of the tokens that are landed on Ethereum, SmartBCH, and others without any form of the use case can be pretty bad rug pulls. And we have to treat them as such so you find out based on the patterns.
So how do you find out which is which in the crypto model? exit or rug pull?
What do you think?