Author: JZ, Founder of JZ Invest Source: X (original Twitter) @jzinvest_xyz
Today, let’s review the price trends of the 6 tokens that DWF Labs has provided liquidity for in the past two months and analyze the patterns that exist.
In a bear market with insufficient liquidity, market makers have become indispensable players, such as providing project liquidity, increasing market depth, and activating the market.
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However, DWF Labs, which serves as both a market maker and a VC, has sparked controversy due to its explosive style.
Due to its distinctive style compared to other market makers, it has even been suspected of market manipulation. The impact of DWF’s participation in market-making on token prices can be divided into two categories:
Category 1: The impact of DWF’s on-chain wallet transferring tokens to exchanges on prices.
Category 2: The impact of the announcement of cooperation in market-making on prices.
Category 1 (1)
Using the on-chain transfer records as examples in the following images, after the second surge of $DODO (left image) and $PERP (right image), DWF Labs transferred tokens to Binance, and then the prices declined, erasing most of the previous gains.
Category 1 (2)
The price trends of $YGG and $Cyber are similar, but the difference is that after the first surge in prices of $YGG (left image) and $Cyber (right image), DWF Labs transferred the tokens to Binance. After another surge to a new high, the prices dropped significantly.
Category 2
Next, let’s look at the price trends after the announcement of cooperation. As seen from the chart below, the price trends of $MASK and $APRA are completely different. Therefore, it can be concluded that the price trends brought by positive news are less predictable compared to transferring chips to exchanges.
How to Apply
After discovering these patterns, you can observe which tokens DWF Labs’ wallet holds in large quantities. When these tokens are transferred from the chain to exchanges, combined with the OI, spot trading volume, and contract trading volume mentioned in the article below, you can roughly speculate about the possible trends in the future. However, it must be noted that although history tends to repeat itself, past events do not guarantee 100% replication in the future. DWF may also exploit the weaknesses of human nature. Just when you think the same event is about to happen again, they may surprise you. Therefore, once DWF Labs appears to have a large on-chain transfer again, you can formulate trading strategies and risk management based on price trends and data.
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