#山寨币战略储备# After years of struggling in the Crypto Assets market, I have noticed a common phenomenon: whenever the coin price falls, retail investors quickly blame the so-called "market makers," as if the little assets they hold are deliberately targeted by them. However, the reality is much more complicated; the strategic vision of market makers is far more long-term than ordinary investors can imagine.

Taking a small market cap token named GAMA as an example, the initial price of this coin is 1U, with a total circulation of 7 million pieces, of which retail investors hold more than 60%. An investment team has accumulated 2.8 million chips at a low price but faces a dilemma: if they directly push the price up to 1.3U, the selling pressure from early low-price retail investors will be unbearable, which may ultimately lead to a price crash. Therefore, they chose a path that seems cruel but is reasonable under market logic – market making.

The wash trading strategy is usually divided into several stages: first is the silent decline, where GAMA slowly drops from 1U to 0.75U, during which trading volume shrinks and market information is scarce. In this atmosphere, panic spreads, and many retail investors believe the project is about to go to zero and exit at a loss, while the funding side quietly accumulates at this price level.

The second phase is the sharp drop that traps new retail investors. The coin price suddenly plunged to 0.55U and then quickly rebounded to 0.85U. This fluctuation attracted many investors who believed the bottom had been reached, but soon after, the price fell again to 0.5U, causing this group of bottom-fishers to be completely trapped, ultimately liquidating their positions under psychological pressure.

The third step is to create market panic: in conjunction with negative rumors such as "project party capital fleeing", the price of GAMA further falls to 0.4U. At this time, most retail investors are completely desperate and exit the market, which is the perfect opportunity for capital parties to accumulate a large amount.

Once the chips are sufficiently concentrated, a small amount of funds can pull the price back to 0.9U, forming a classic V-shaped reversal. The original low-priced retail investors no longer dare to chase high, while the new investors generally have their costs around 0.9U, showing more patience towards the subsequent market.

After this round of operations, the funds have increased to 4.5 million coins, and the average cost is even lower. More importantly, the floating chips in the market have been cleaned up, creating good conditions for subsequent rises.

Washing the market is essentially a "blood exchange" process: it invites low-cost, easily sellable retail investors to exit, replacing them with high-cost and relatively stable holders. Although this strategy seems cruel, it aligns with market rules.

So, the next time you encounter a market fall, instead of blaming others, it is better to calmly analyze: this may just be the large funds preparing for future trends. Understanding this logic will help you stay clear-headed in the market and make wiser investment decisions.