A Brief Discussion on the Phenomenon of "Dominating Dealer Coins": The Risks and Illusions Behind the Prosperity

1. What is a "dominating dealer coin"?

"Dominating dealer coin" is not an official market term, but rather a colloquial term used to refer to a certain type of token. It refers to tokens that are highly controlled by a few large holders or pooled funds (commonly known as "market makers"), which manipulate the market to achieve price increases. These types of tokens often lack actual technical support, application scenarios, or ecosystem development, and their price fluctuations are almost entirely driven by capital rather than true demand.

2. Typical characteristics of "dominating dealer coin"

1. Lack of fundamental support
Although referred to as "Layer 1/Layer 2 network" projects, the token has made almost no substantial progress in terms of technical updates, partnerships, and ecological applications. Community discussions are mostly focused on "price" and "when will it pump," rather than the value of the project itself.

2. Highly concentrated holding addresses
The top 10 addresses of most dominating dealer coins often hold more than 80% of the coins, indicating that liquidity is actually highly controlled. Ordinary investors can easily become "the ones who take the fall."

3. The extremization of social media sentiment
The communities of these types of tokens are often polarized: one group fervently promotes them, while another group questions and criticizes, creating a typical "FOMO" (Fear of Missing Out) sentiment.

But the benefits of a "dominating dealer coin" like ADA, which has consistently ranked in the top 10 for many years!

The so-called "benefits" of the dominating dealer coin:

1. The price rises rapidly and significantly (the market maker is aggressive)
To attract market attention and encourage retail investors to follow suit, market makers will deploy large amounts of capital to quickly drive up coin prices, creating the illusion of a surge. For short-term traders, if the timing is right, they may achieve returns far exceeding the market average.
2. Strong resistance to decline over a certain period (market protection)
When the coin price falls to the market maker's cost zone or key support level, the market maker usually intervenes to protect the market (by buying in large quantities to support the price) in order to maintain their own interests and market stability. This makes the coin price possibly more resilient to declines compared to other small coins during a downtrend.
3. Create market hotspots and FOMO emotions
Dominating dealer coin is usually accompanied by extremely high topicality and community activity. The market maker will release favorable news through media, KOLs, and communities, combined with price increases, creating a "fear of missing out" (FOMO) sentiment to attract a large influx of traffic and funds. #加密市场反弹#