2026-01-18 14:26:39

Why are low-circulation tokens combined with high leverage contracts so popular? The logic is actually quite simple.

What does low circulation mean? A small amount of capital can move the spot price, which is fundamental. The real killer move is: after opening perpetual contracts simultaneously, the volatility on the spot side will be amplified to the contract side through the mark price mechanism, leading to a chain reaction of liquidations.

The manipulator's tactics are roughly as follows—first, create momentum with trading volume and craft narratives to attract retail investors. When retail investors see high enthusiasm, they follow suit by piling up leveraged positions on the contracts. Once the positions accumulate to a certain level, the manipulator suddenly pulls or dumps on the spot side, causing the price to break through key levels instantly, triggering chain liquidations. The mark price then surges or crashes, causing one contract account after another to be liquidated, and finally, the cheap tokens are eaten up by big players.

This combination is effective mainly because, in a low-circulation environment, the price discovery mechanism itself is fragile. Coupled with the leverage amplification effect of contracts, the risk grows exponentially. Retail investors are essentially the prey in this scenario.

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PuzzledScholar

· 8h ago

It's the same trick of cutting leeks again, I've seen through it long ago. Low liquidity coins with high leverage are just like hell mode; retail investors really need to wake up. The mark price mechanism is designed to amplify volatility; anyone who touches it will die. Once the chain reaction of liquidation occurs, the leeks should be fully harvested. I wouldn't even touch this kind of coin; it's too easy to get caught. Are there still people daring to play with low liquidity and high leverage? I really don't understand. When the price discovery mechanism is fragile, you should stay away; there's no need to seek death yourself. No matter how deep the market maker's tricks are, I won't fall for them; one loss is enough.

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StableGeniusDegen

· 8h ago

Damn it, it's the same story again. Retail investors are always the last to buy in.

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WalletWhisperer

· 8h ago

It's the same old trick again; low-circulation coins are basically the hunters' playground for the whales.

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GateUser-afe07a92

· 8h ago

It's all the same routine, how many times have I seen this? Low circulation coins are just a hunting ground for big players. Retail investors are still shouting to get in, not realizing they've already been surrounded. Futures contracts, leverage is basically gambling, and low circulation coins are an even bigger risk. Basically, it's the ultimate version of cutting leeks, and the mark price can wipe everything out in one wave. Perpetual contracts paired with low circulation coins—this combination is perfect, truly born for harvesting. I've seen too many people get liquidated overnight because of this, and now I wouldn't touch such coins at all. The liquidation mechanism is just a trap; manipulators have long planned their routines. What does low circulation mean? It means your money isn't worth much. I never touch these coins; it's too obvious a conspiracy. Futures liquidation and all that, just listen to the stories, really don't play with it.

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