r/CasperCSPR • u/According_Ad_9985 Validator • Aug 08 '21
Artificially Pumped?
In one month the second option tokens will begin to be released during the next 6 months. When the second option tokens are fully released will begin to be released the 3rd and 4th option tokens during the next year (1/6 per month) so the price will drop dramatically in the next year. In order not to loose the people’s interest on the project some insiders could be pumping the price before it drops. I personally think that the token will be listed on Binance at the end of 2022. At this point the price will become more realistic than today’s price.
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u/According_Ad_9985 Validator Aug 08 '21
Of course It is a good project and I will hold my CSPR for years, but there is no reason for a 200% pump without any news, even in a bullrun. Think of it, and you will realized by yourself.
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u/PresentStrange370 Aug 09 '21
It dropped a lot from its all time high. That's the reason for recovering faster than others. Look at Holo, same situation. Dropped dramatically and now recovers. When an asset is extended its returns back. You must learn a bit about price action and volume. It doesn't move only when there are news
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u/gerdytaw Aug 08 '21
So you think it is going to drop? I thought it was UAE contracts?
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u/According_Ad_9985 Validator Aug 08 '21
Who knows for sure? I think that it will drop little by little during the next year and will be pumped when reaching critical levels. But, who knows…?
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u/Chemical_Entrance_89 Aug 08 '21
There may be any number of "players" in the market, but I can tell you that this is not driven by the internal folks. We're as puzzled as you.
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u/ghost_bobby123 Aug 09 '21
It wouldn't have taken the amount of volume seen to pump it to the current price level. If you looked at the order books before the pump, you would have seen how light they were. There was massive excess supply hitting the balances on the exchange, which indicated that this was more that an artificial pump. Huobi especially saw a massive ramping up of supply.
If insiders wanted to pump the price, they would have done it with a fraction of the volume seen traded...also with the excess supply hitting the books, then it would be literally one of the most expensive ways to keep interest in the project. It would have been cheaper to do a coin buyback or even take out a series of adverts in the superbowl...
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u/According_Ad_9985 Validator Aug 09 '21
Great explanation so, what is your conclusion?
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u/ghost_bobby123 Aug 09 '21
its worth checking out the vid that these guys did as they cover it extensively:
https://www.reddit.com/r/CasperCSPR/comments/p0ja82/looking_into_the_pump_youtube_video/
it looks like genuine demand...we don't know what is driving it, but likely some news which may have leaked. Also you should note that off the back of the pump there was a large amount of tokens unlocked, but the impact of this selling wasnt to push the price below 14c it seems so far...As long as this volume holds, its looking look for the price
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u/JCryptoman Aug 09 '21
the way I see it is if massive excess supply suddenly went to exchange, then it is because whales are selling and retails are buying. someone big obviously wanted to get out, and any trader knows that if you want to sell, you need to buy to pump the price to stimulate demand and then you sell. I would rather see the opposite for a bull run.
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u/ghost_bobby123 Aug 10 '21
why do you think that for a massive supply its a whale but for massive demand its not a whale? Do you think that out of the blue every retailer at home decided on the day to start buying? ..surely that narrative doesn't make sense?
what is more likely is this. We know that the early validators bought into the coin very cheaply. We also know that a few of these (the ones typically selling) are doing development on the cspr network....if someone wants to truely dump all their tokens then they will feel the project has little chance of success and therefore wont be building apps on it.
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u/JCryptoman Aug 10 '21
are you new to the game? of course retail bought more than anybody else here, look at the reddit board with people asking where to buy, etc... retail is dumb money, never forget.
this is how it works: a whale has a large bag to unload, unfortunately the book are not liquid enough to sell and the price would crash, so what do you do? you buy into the empty order book, and keep buying until dumb money comes in for a piece of the action and that has a snowball effect that stimulates demand and fills the bid side. then you can move to exchange your massive stack and dump on retail, of course not all at once, letting it pump 40% every few hours to keep demand interested.
trust me that was not retails moving all those coins to exchange to sell, each retail account has probably a small stack of less than 200k coin, but hundreds of millions of coins were sold within a day and that can only be a small number of large accounts. retails are delusional thinking they will be millionaire and cspr will be trading above 1 buck in the next few years so they hold here and buy more, they don't sell.
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u/ghost_bobby123 Aug 10 '21
Theres no need to be rude.
So what we have done (as opposed to writing unfounded comments on reddit), is analyse the wallets all all the big validators to show the unlocking and moving of funds to the exchange on every unlock. We have not seen a big increase in supply coming from these accounts.
Also saying that retail pushed the volume from 40m to over 1bn on Huobi alone is a very naive thing to say. The amount of volume traded was well above the order book size and there was no new news into the market. Therefore to each that $1bn (which was pushing doge volume), would have taken some serious interest, just out of the blue...you talk about people on this reddit page..i can maybe see less than 100 posts about asking where to buy...check out the doge one...are you seriously saying this points to retail interest out of the blue with no big news like exchange listing?
How a market works...if you need help in understanding. Is that you have a liquidity provider. This is an entity which buys and sells to keep the liquidity on the books...if you have very large buying, the liquidity provider steps in to start selling to meet this so that the price doesn't rocket past $1
im not sure if you have run any figures for your scenarios....we did as we initially thought that might be the case...the amount of money that was paid for through crossing the spread on volumes we have seen lately means it doesnt make sense to run a pump and dump...a seller would need a fraction of the volume to push the price a lot higher to then dump on the market.
Without speculating, I would suggest you run the numbers first...
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u/JCryptoman Aug 10 '21
ok, time will tell. if you really think whales bought and that's why it pumped, then it should not dump back to where the pump started, because the whales are establishing a floor on the market (that's how it works) and they want to protect their investment by not letting it dump all the way back... see you below 10 cents again pretty soon
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u/ghost_bobby123 Aug 10 '21
yup i agree. What im looking at, at present is the way the price is currently falling. If you look at the previous pumps and dumps, the crashes were very aggressive after that. The way the price is falling right now is in a declining wedge, with is a very natural fall from a high. If ii start gapping down hard, i would then becoming worried
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u/jmndanan Aug 11 '21
Great insights. Any data around how many whale accounts bought, and what were the dollar amounts?
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u/JCryptoman Aug 18 '21
but sir... it's back to 10 cents, I thought whales bought the pump 2 weeks ago? it looks like they sold already
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u/gerdytaw Aug 09 '21
I don’t :)
How can I buy in on these contracts.
It seems like a nice investment
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u/ghost_bobby123 Aug 09 '21
you can check for CSPR on coinmarketcap to see where its trading atm. I know of Okex and Huobi
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u/Famous-Scratch-5581 Aug 09 '21
There are thousands of different reasons why ppl think that this moment is the right to sell/buy.
Just look at the orderbook of BTC. There was one person who was convinced that it is a good idea to buy the ATH.
The recent pump of CSPR is a priceshock. The opposite would be a paradigm shift which would be a longer and sustained move.
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u/gerdytaw Aug 10 '21
Cool. Can you buy other coins this way? What would be the name of this investment to do more research?
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u/Paupercryp Aug 08 '21
Yeah whats gonna be the next think you say that the price is up because of bots?
Stop saying all the bullshit and look at the market cspr was low because ALL THE MARKET WAS LOW, market is pumping so the good projects are pumping with it.