Cryptocurrency Market Makers Exploit Low-Circulation Tokens

The cryptocurrency market has long been plagued by manipulation, with market makers using various tactics to control prices and extract funds from retail investors. One such tactic involves the use of low-circulation tokens on Binance, which are often targeted by market makers due to their thin liquidity.

Two types of manipulations have been identified: 'Squeeze-type' pumps and 'Pump and Dump' type coins. The former involves a deliberate attempt to create a squeeze by accumulating a large position in a low-circulation token, while the latter involves using leveraged contracts to artificially inflate prices.

Market makers use various tools to facilitate these manipulations, including Binance Alpha, Binance Futures, and other derivatives platforms. They also use AI narratives to create a false sense of legitimacy around their pump-and-dump schemes.