March 29, 2024
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How Markets Are Dumped: Technology

A little inside information about organizing FUD and market manipulation from someone who has (a lot) beforetimes) hands were covered in blood.

First, a short introduction.Before moving to cryptocurrency, I was a senior executive at a large company operating in one of the most competitive sectors. My gains and losses alone were greater than those of some small nation states. We have also been heavily regulated with over 125 licenses in ~ 100 jurisdictions.

In 2016, I started into cryptocurrencies by launching a full-service company covering, but not limited to:

  • compliance with legal and regulatory requirements - boring things;
  • Solidity development - developing a variety of shitcoins that you all love so much;
  • marketing and PR - pumping of various shitcoins "to the moon";
  • OTC brokerage - exit from the market for smart money with minimal drawdown.

In total we served about 50 clients,mostly regular ERC20, but also some early ERC721 (NFT as the younger ones call them). At the time, we used them to create digital receipts for physical gold custody for private banks in Hong Kong, Switzerland, Monaco, etc.

We've also done a lot of community work and sentiment management for our OTC department.

So, let's say you are a fund that wantsget exposure for BTC, but think you missed the optimal entry level. If only there was a small correction, you would definitely take advantage of this opportunity.

We ask you what type of correction sir would prefer to receive this morning? Dramatic Drop with Instant Buyout? Looking for liquidity? Ah, great choice: "the end of the bull market"!

Well, we need to bring down the market to give you the opportunity to buy cheaper.

Step 1. Preparation for work. We pay several low-level media outlets to publish bearish news, but without additional promotion on their channels - that's enough for now.

Step 2: Pay a few writers from Bloomberg, Forbes, etc. to post some hot quotes from Step 1 with a link to the article.

It's not difficult at all:

a) the meme about the starving authors is quite real;
b) they constantly need fresh content;
c) their fee is tied to the amount of traffic generated by their stories.

Screenshot of a price plate and contacts (behind the scenes) I found on one of the old hard drives.

So now our content is on somelow-level news sites and a few first-level sites. It's time to connect personal connections. We open our address book and ping every tech writer who has ever been given drinks at a conference: “Dude, you missed the story! It's already on Reuters, you should publish itimmediately! "

The story is gaining momentum and comes to PR services. Everyone from NewsBTC to Reuters writes about it, so obviously the information can be trusted.

It's time to connect crypto twitter influencers.All these guys tweet the story itself, or variations of it, with the obligatory keywords—“ban,” “hack,” etc.—for the algorithms that measure user sentiment.

Now it's time to tie it all together,by running a dump using our trading algorithm. It is essentially the opposite of a standard OTC broker algorithm in that it looks for the thinnest order books on exchanges that are included in the calculation of price indexes for futures (Coinbase, Kraken, Gemini, etc.) and dumps the asset into them with market orders.

Retail traders see the dump, rush intotweet find out what's going on and see what all crypto twitter is talking about this new story. They panic when the algorithms continue to dump and then liquidations begin.

Retail sales, a cascade of stop losses andliquidations are completed by lowering the price to our orders. We respond with a dump to any premature recovery attempt in order to maintain the necessary momentum.

Bingo.

It's all for today. Hope it was enlightening, and when the next perfect storm hits the crypto market, you will remember that it is perfect because it was designed by professionals with military precision.

 

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