The crypto world is full of twists and turns: the two major "smoke bombs" before the Rug Pull, don't fall into the trap of retail investors

In the crypto world, a market maker in this volatile market always tries to hide its intentions, and there are two key features before a Rug Pull by the market maker that they least want retail investors to know.

- Feature 1: High-level abnormal volatility: The Rug Pull timing of the Market Maker is often chosen during the high-level phase after continuous large increases in digital currencies. At this time, there will be a situation where there is a high-level volume surge before a rise, or a significant gap up followed by a huge volume fluctuation, which seems like a large amount of funds are flowing in, but the price does not rise significantly. This is called 'volume stagnation'. The Market Maker conducts volume surges or significant gap ups to attract a large number of trend-following positions so that they can sell at high prices. However, the Market Maker holds a large number of chips and cannot clear the position all at once like a retail investor. Therefore, after this, there will be a high-level fluctuation, with prices jumping up and down, creating the illusion that the Market Maker is attracting chips and inducing retail investors to continue entering the market. For example, on the first day, after the initial high, the Market Maker sells a portion; the next day, there is a significant decline in the morning, followed by a violent bottoming and rebound in the afternoon, making retail investors mistakenly believe that the downturn has ended. By repeating this operation, retail investors gradually relax their vigilance and increase their positions. In this process, the Market Maker can smoothly unload their positions.
- Feature 2: Strong illusion at the top: Although this feature has a high accuracy, it is relatively complex to understand. In summary, it is "the stronger the top, the stronger it is." At first glance, it may be confusing to some people. Market makers are all selling, so how can they still appear strong? In fact, market makers hold a huge amount of chips in their hands, and selling is not easy. When selling, they not only need to maintain the currency price and give retail investors confidence, but also sell quietly. If they are not careful, retail investors may pull the rug first, and the market maker may be trapped at a high position unable to sell. Therefore, they will repeatedly suppress the market and then pull it up, or even continuously make new highs, to stimulate the desire of retail investors to chase highs. From the trend perspective, it looks like the market is still strong; from the technical indicators, there will be oscillations after the divergence, or the divergence phenomenon of making new highs after continuous adjustments.