Anti-dump/Anti-Dumping Policy

Understanding the Anti-Dumping Policy

An anti-dumping policy is a set of regulations created to safeguard investors against pump and dump schemes. Dumping occurs when a large investor, commonly referred to as a whale, buys a significant number of tokens with the intention of artificially inflating the price and then selling them off for substantial profits.

An example that highlights the impact of an anti-dumping policy is the case of the SQUID token. Initially valued at only $0.01, the price of SQUID skyrocketed, leaving investors unable to sell their tokens due to various policies, including the implementation of an anti-dumping policy. In a market dominated by buyers, fraudsters took advantage of the surge in price and absconded with the invested funds. Consequently, the token’s price plummeted from $2,856 to $0.00079 within minutes.

However, not all tokens operate in this manner. Certain coins like THUNDERCAKE and DrunkDoge offer anti-dumping protection to investors.

THUNDERCAKE, for instance, ensures that more than 0.1 percent of its total supply cannot be sold. Additionally, buy orders for THUNDERCAKE tokens are limited to 0.5 percent of the entire supply. These measures are in place to prevent whales from entering the ecosystem and engaging in dumping activities.

Similarly, DrunkDoge controls price volatility by imposing restrictions on whales, preventing them from buying or selling large amounts of tokens in a single transaction. The platform has an anti-dumping mechanism that enforces a cooling-off period of 1/2/6 hours and increases taxes after each sale to discourage excessive dumping of the currency.

Aside from anti-dumping policies, there are other measures in place to protect investors, such as buybacks. Companies implement buyback policies for various reasons, including reducing the number of tokens in circulation over time. The goal is to significantly increase token values, generate speculation, and create hype.

Several projects, including Binance and Nexo, have conducted buybacks. Nexo, for example, initiated a buyback program after the core development team noticed a decline in the value of their asset. Consequently, they decided to limit the number of project tokens in circulation, which helped improve the market price.

During a token price surge, it may be tempting to invest or try your luck like everyone else. However, it is crucial to adhere to certain guidelines:

  • Pay attention to social media groups that provide free signals indicating an upcoming pump. This is one of the indicators of a pump and dump scheme, where some group members may be orchestrating the pump.
  • Seek financial advice from experts or conduct thorough research to make informed investment decisions. Be cautious of influencers who rarely discuss cryptocurrencies but suddenly start promoting a token.
  • Only invest an amount that you can afford to lose. While it is possible to profit from a pump and dump if the timing is right, it is advisable to anticipate potential risks that could result in the loss of your tokens.

Anti-dump/Anti-Dumping Policy

Understanding the Anti-Dumping Policy

An anti-dumping policy is a set of regulations created to safeguard investors against pump and dump schemes. Dumping occurs when a large investor, commonly referred to as a whale, buys a significant number of tokens with the intention of artificially inflating the price and then selling them off for substantial profits.

An example that highlights the impact of an anti-dumping policy is the case of the SQUID token. Initially valued at only $0.01, the price of SQUID skyrocketed, leaving investors unable to sell their tokens due to various policies, including the implementation of an anti-dumping policy. In a market dominated by buyers, fraudsters took advantage of the surge in price and absconded with the invested funds. Consequently, the token’s price plummeted from $2,856 to $0.00079 within minutes.

However, not all tokens operate in this manner. Certain coins like THUNDERCAKE and DrunkDoge offer anti-dumping protection to investors.

THUNDERCAKE, for instance, ensures that more than 0.1 percent of its total supply cannot be sold. Additionally, buy orders for THUNDERCAKE tokens are limited to 0.5 percent of the entire supply. These measures are in place to prevent whales from entering the ecosystem and engaging in dumping activities.

Similarly, DrunkDoge controls price volatility by imposing restrictions on whales, preventing them from buying or selling large amounts of tokens in a single transaction. The platform has an anti-dumping mechanism that enforces a cooling-off period of 1/2/6 hours and increases taxes after each sale to discourage excessive dumping of the currency.

Aside from anti-dumping policies, there are other measures in place to protect investors, such as buybacks. Companies implement buyback policies for various reasons, including reducing the number of tokens in circulation over time. The goal is to significantly increase token values, generate speculation, and create hype.

Several projects, including Binance and Nexo, have conducted buybacks. Nexo, for example, initiated a buyback program after the core development team noticed a decline in the value of their asset. Consequently, they decided to limit the number of project tokens in circulation, which helped improve the market price.

During a token price surge, it may be tempting to invest or try your luck like everyone else. However, it is crucial to adhere to certain guidelines:

  • Pay attention to social media groups that provide free signals indicating an upcoming pump. This is one of the indicators of a pump and dump scheme, where some group members may be orchestrating the pump.
  • Seek financial advice from experts or conduct thorough research to make informed investment decisions. Be cautious of influencers who rarely discuss cryptocurrencies but suddenly start promoting a token.
  • Only invest an amount that you can afford to lose. While it is possible to profit from a pump and dump if the timing is right, it is advisable to anticipate potential risks that could result in the loss of your tokens.
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