In a recent statement, cryptocurrency detective ZachXBT issued a warning to the crypto community about potential market manipulation tactics employed by Gotbit Hedge Fund, a well-known market maker in the industry.
ZachXBT advised caution when dealing with Gotbit-related projects. A leaked report claims that the market maker offers questionable services that could manipulate token prices during their initial launches.
According to the report, Gotbit allegedly artificially inflated the token price in the first few minutes of the price discovery phase. The strategy involves raising the price up to ten times the initial value to generate a “Fear of Missing Out (FOMO)” among potential buyers.
The leaked report quotes Gotbit as saying: “We will increase the price by 10 times to generate FOMO in the first minutes of the price discovery phase and accumulate as much purchasing power as possible to reach extreme Xs and sell maximum tokens in the next increase.”
If this strategy claim is true, it could lead to significant price swings and potential losses for investors who buy during price volatility.
*This is not investment advice.
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Source: https://en.bitcoinsistemi.com/critical-warning-from-cryptocurrency-sleuth-stay-away-from-altcoin-projects-working-with-this-market-maker/