In a series of tweets, the crypto trader known as @DeFiTracer claims to have earned over $130,000 last month by following the movements of market makers. Market makers are companies that enhance liquidity and facilitate trading by creating supply and demand. However, @DeFiTracer alleges they manipulate prices for profit. DeFi Tracer shares insights into these manipulations, empowering traders to recognize market maker moves and potentially earn 10-100x returns.
What you'll learn 👉
DeFiTracer’s Strategy Insights
According to DeFiTracer, grasping market psychology and avoiding MM manipulation is key in today’s volatile crypto landscape. MMs typically trigger significant token movements through strategic buying and selling. By decoding their schemes, the trader profited immensely.
“Market makers can manipulate markets and profit from price differences due to their large token holdings,” DeFiTracer explains. “Learning their moves allows you to earn significantly more.”
Two Types of Market Makers
The trader highlights two main categories of MMs operating in the space. First are those acting as advisors to crypto projects, assisting with tokenomics, listings, and fundraising. However, DeFiTracer suggests their ultimate aim aligns with traditional MMs.
These conventional players focus on liquidity provision, narrowing spreads between buyers and sellers, and facilitating efficient trading. Crucially, they are often behind major market sell-offs according to the trader.
Influential Market Makers
Among the most influential MMs cited are Amber Group, DWF Labs, and GSR. DeFiTracer urges monitoring their activities to grasp market impacts. For example, Amber Group recently partnered with Pendle Finance, while DWF Labs has integrated with over 60 exchanges.
GSR, boasting over 10 years of experience, offers personalized services and has cultivated trust among investors. Ultimately, MMs build long-term relationships with token issuers according to the trader.
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Show more +Manipulation Tactics
@DeFiTracer outlines several common manipulation tactics used by market makers:
- Partnership Announcements
Significant price spikes can follow partnership news, as seen recently with iMe Platform and DWF Labs. This allows market makers to profit.
- Riding Market Sentiment
During bull markets, makers induce FOMO to drive up prices. In bear markets, they instill fear to drive prices down before accumulating.
- Pump and Dumps
Peculiar token movements with constant pumps and dumps are a telltale sign of market maker involvement.
- Forming Partnerships
Notably, market makers build long-term relationships with token issuers. For example, the AmberGroup partnership with Pendle Finance. This allows them to potentially influence these assets.
Capitalizing on Knowledge
“Understanding market maker actions is crucial,” stated @DeFiTracer. “If you understand this, you can calmly profit from it instead of falling victim to their manipulations.” He advocates learning to read market maker moves as a path to significant crypto profits.
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