#ALPACA大涨# The unusual performance of ALPACA this time is rooted in the catalyst of the BN delisting announcement and the precise manipulation by market makers. Typically, a delisting leads to a Token price 50% Slump, and after investors sell off their chips, the market makers collect profits through pump and dumping. However, ALPACA only fell by 20%, which led many to mistakenly believe it had "strong anti-fall characteristics" and choose to short. Unbeknownst to them, ALPACA has a small market capitalization, making its circulating supply easy to manipulate. Market makers had already accumulated in advance, rapidly pushing up the price using the high leverage of the contract market, directly "slaughtering" the shorts. Subsequently, the retail investors made poor decisions by shorting when the price was rising and chasing rising prices when it was falling, which became an excellent script for the market makers to harvest.

However, just when the market sentiment was high, the project party threw out a "riotous operation" - announcing plans to issue additional tokens. This is believed to be a means for the project party to use the market boom to create panic and induce retail investors to sell, so that the main force can absorb chips at a low level. Sure enough, the news of the additional issuance caused the price to fall briefly, and retail panic selling ensued. The subsequent strong rebound in the price shows that the main force has already hoarded enough chips to take the opportunity to pull up and harvest another wave.
At the same time, ALPACA's funding rate mechanism has become a "weapon" for market makers to harvest retail investors. Simply put, the funding rate is the fee paid by both long and short positions in the futures market to balance their positions. When short positions dominate, shorts must pay fees to longs. In the ALPACA incident, the exchange shortened the rate settlement cycle to 1 hour, with a rate as high as -2%, causing shorts to be "sliced" every hour, with no ability to fight back. Market makers earn a fortune through liquidation profits and rate income.
This "delisting frenzy" is a classic example of market makers at play. The market makers are like directors, while retail investors become actors constrained by the script.
The ALPACA incident reveals the harsh reality of the crypto market: low market capitalization tokens are easily manipulated.
The circulating supply is small, and market makers can easily control the market.
High-leverage contracts are a retail investor graveyard: extreme volatility and high fees leave retail investors nowhere to escape.
Transparency of the project team is crucial: the incident of issuing additional tokens severely damages trust. Therefore, when retail investors encounter delisting of tokens, they should not blindly short or chase rising prices, and be cautious of market maker tricks.