In the past, star projects quickly sold off during the "crazy surge" market, investors chasing "demon coins" should not be blindly optimistic.

Mars Finance News, on April 14—Recently, some altcoins have been surging wildly. Driven by behind-the-scenes whales, tokens represented by RAVE have been continuously pumped, rising by dozens of times within just a few days. Although such deliberately orchestrated pump-and-dump schemes are highly controversial and the final outcome is often disastrous, aggressive investors are still actively involved and are hoping to buy the next “RAVE.”

On the back of this sentiment, some project teams have seized the opportunity to quickly pump up prices to distribute their holdings. Their tactics often involve pushing out a 1-hour massive bullish candle, creating the illusion of a “monster coin.” As retail investors rush in to follow the buys, the team rapidly dumps the tokens in their hands at any cost, causing the coin price to drop quickly. Examples include FF and INX.

The former saw a rapid surge in the early hours of the 11th: it doubled within 1 hour from $0.07, then reached a stage top of $0.17641 before quickly falling. As of press time, the token has dropped back to $0.07786. The INX team, meanwhile, makes no attempt to conceal its pump-and-distribution behavior. After experiencing a day of a pump that doubled the price, at least two addresses unlocked tokens worth roughly $400,000 and sold them quickly, triggering a rapid drop in the coin price by half.

Worth deep thought is that both FF and INX’s teams were once star projects that received significant funding (raising $20 million and $65.3 million, respectively). Yet now they have relied on “scamming for pumps” and dumping to get liquidity back—truly disheartening.