Cabal Coins: How They Operate

Cabal Coins: How They Operate

July 02, 2024

Overview

Cabal Coins are manipulated by insiders who buy up most of the supply at launch, then use influencers to hype up the price. This attracts retail investors, inflating the market cap to millions. Insiders and influencers sell at inflated prices using tactics like TWAP, leaving regular investors with worthless coins once the price crashes. Always research before investing in hyped-up cryptocurrencies and be cautious of sudden price surges promoted by influencers.

3 min. read

3 min. read

3 min. read

Imagine a new cryptocurrency launches, but before you can buy any, a small group scoops up most of the coins. Then, celebrities and influencers start discussing it online, pushing the price up. Finally, those who bought early (the insiders) and the influencers cash out, leaving you holding the bag with a worthless coin.

Cabal Coins have recently gained popularity for how they are manipulated. These coins attract instant crazy hype, drawing in unsuspecting retail investors who are unaware of what’s happening behind the scenes.

How it Works

During the launch, insiders acquire 80-90% of the available coins, controlling the majority supply. This manipulation ensures they significantly influence the coin's price from the start.

Key Opinion Leaders (KOLs) receive free coins and promote them to their followers. They also lobby exchanges to list the coin, creating hype and driving demand among retail investors.

The market cap of Cabal Coins quickly inflates to $30-50 million through coordinated buying and social media advertising. This artificial growth gives the illusion of high demand, attracting more retail investors.

Insiders and KOLs use the Time-Weighted Average Price (TWAP) strategy to maintain a higher average price. They sell their holdings at these inflated prices, leaving retail investors with devalued coins when the price eventually drops.

Conclusion

This highlights the dangers of blindly following influencer recommendations in the cryptocurrency space. Always do your own research before investing in any crypto. Be wary of situations where a coin experiences a sudden, unexplained price surge, especially if it's heavily promoted by influencers. 

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.

2024