Beware of false prosperity: How to identify "blowing bubbles" and "Be Played for Suckers" in market manipulation.

In the encryption asset market, there exists a type of malicious manipulation known as “blowing bubbles - Be Played for Suckers”. This manipulation pattern seems simple, but its effects are far-reaching: a small group of market participants acts in concert to first create the illusion of false prosperity, and then suddenly withdraw their investments, leaving latecomers to suffer total losses.

The Mechanism of False Prosperity

The core logic of “Blowing Bubbles - Be Played for Suckers” is very straightforward. First, early holders of certain assets or core team members secretly accumulate a large number of tokens. They may control a certain fungible token or control the supply of certain non-fungible tokens (NFTs). Subsequently, these behind-the-scenes operators will initiate an opinion mechanism—flooding various social media platforms with promotions, spreading optimistic information about the project, and sometimes even fabricating fake news. The goal is clear: to attract ignorant investors to follow the trend and enter the market.

Once this wave of hype succeeds, the demand side is artificially activated, and asset prices will rise in response. In the short term, the market may fall into a frenzy state — prices soar, and trading volumes explode, which further reinforces the psychological expectation of “this is a big opportunity.”

Turning Points and Crashes

But prosperity often fades quickly. When prices peak, these pre-positioned participants will not hesitate to sell off in large quantities. Massive sell orders instantly flood the market, the supply side suddenly expands, while the demand side shrinks due to panic. The result is catastrophic—prices plummet vertically, with the curve almost declining vertically.

Retail investors who were attracted in at high prices are in trouble. The assets they purchased have severely depreciated, and many did not even have time to escape before the prices completely collapsed. In the end, the latecomers bore all the losses.

Why is this manipulation so harmful

While participants may be tempted by the prospect of quick profits, it must be made clear: such manipulation strategies are not only morally unacceptable but also illegal. The damage caused by this behavior to the entire encryption asset ecosystem is profound—it destroys trust, deters reasonable investors, and hinders the healthy development of the industry.

Ways to Protect Yourself

Investors should adhere to the principle of Do Your Own Research (DYOR) and gain a deep understanding of the fundamentals of the project, rather than being swayed by short-term price fluctuations and exaggerated promotions. Only by investing in projects with real value and transparent governance can one avoid such risks in the long run. Remember: there is no such thing as a free lunch, and the rationality of the market always prevails over speculative luck.