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In the cryptocurrency market, investors need to be highly vigilant regarding certain tokens that experience a rapid price surge in a short period. These tokens are fundamentally different from traditional high-volatility tokens. Traditional high-volatility tokens typically exhibit drastic price fluctuations both during rises and falls. The type of token we are going to discuss today is more akin to a "scam" coin.
The typical characteristic of this type of token is a significant price increase that occurs only once, usually driven by a single large order. After the price is driven up, the token issuer will undertake a series of complex operations to entice retail investors to enter the market. They may open some short positions to artificially create the illusion of negative rates, while at the same time controlling the price within a profitable range.
The purpose of this operational method is to maximize profits in the short term. Once this operation is completed, the token usually loses its value, while the behind-the-scenes manipulators may have already gained considerable profits.
Investors need to be particularly cautious when dealing with such tokens. Although there may be instances of negative rates in the early stages, over time, the rates usually return to normal. Therefore, adopting a strategy of continuously shorting such tokens may pose risks.
Overall, in the cryptocurrency market, investors need to remain vigilant and gain a deep understanding of the characteristics of various tokens and the potential risks involved. Do not be tempted by short-term high returns, but instead focus on the long-term value of the project and its real application scenarios. Only in this way can wise investment decisions be made in this market full of opportunities and risks.