How Market Makers Manipulate Crypto Prices — And How They Scam

Market makers play a crucial role in providing liquidity in crypto markets. However, not all of them operate ethically. Here's how some market makers manipulate prices and scam retail investors:
1. Pump and Dump
Market makers artificially pump the price of a coin by placing large buy orders or coordinating with influencers to create hype. Once retail investors start buying in, they suddenly sell off their holdings (dump), crashing the price. Early buyers get trapped in losses.

2. Spoofing
This is when market makers place huge buy or sell orders without the intention of executing them. These orders create a false impression of demand or supply, misleading traders into making wrong moves. Once the market reacts, the fake orders are removed.

3. Wash Trading
They trade the same coin back and forth between their own accounts to create fake volume. This makes a coin look more popular than it is, attracting unsuspecting investors.

4. Stop-Loss Hunting
They push the price down (or up) intentionally to trigger people’s stop-loss orders, causing forced selling (or buying). After the sell-off, they buy back at a cheaper price, making a profit.

5. Price Suppression
When big players want to accumulate a coin cheaply, market makers may deliberately suppress the price by selling in small portions or using bots to keep the price down until accumulation is complete.

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