A picture and text to understand how the dealer washes the plate, and the retail investors refuse to hand over their chips, will they keep washing the plate?

1️⃣ The first question: the real purpose of the bookmaker's washing
🟨 Wash ≠ simply grab chips
Many brothers believe that the dealer shuffles in order to snatch the tokens from you.
There is some truth to this view, but it is not comprehensive.
The real goal of the market maker wash is to create market panic and volatility by creating
Purge the undetermined holders (i.e., floating chips),
This allows you to collect more tokens at a lower cost, while reducing resistance to subsequent ramps.
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To put it simply, the purpose of the shuffle is to optimize the position structure of the market maker, not simply to snatch the tokens of retail investors.
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🟨 Reduce costs and reduce selling pressure
Let's understand the logic of the bookmaker's operation with an example.
Let's assume that an anonymous team issues a total of 1 billion MEME coins with an initial price of $0.01.
After the project team locks 50 million shares through the liquidity pool to establish a bottom position, the robot program is used to create price shocks on the decentralized exchange:
🚩 Phase 1: Raise the price from $0.01 to $0.03 to attract the first FOMO funds.
🚩 Stage 2: Create a daily decline of 15% for three consecutive days through multi-account reverse trading.
🚩 Stage 3: Spread similar rumors such as "team running away and smashing the market" in Telegram groups and Twitter, triggering panic selling.
🚩 Stage 4: After recovering the chips at a low price, cooperate with the exchange listing announcement to violently pull the market.
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In this process, the holding cost of the project team decreased from US$0.012 to US$0.008, and the holding volume increased from 50 million to 80 million, laying the foundation for subsequent control.
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Through this series of operations, the bookmaker accumulates more chips at a lower cost, and at the same time cleans the retail investors who are not determined, reducing the selling pressure for the pull.
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🟨 Paving the way for pull-up and high-level shipments
Another key purpose of the shuffle is to create conditions for ramp-up and high-level shipments.
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If the market maker does not wash the floating chips through the shuffle and directly raises the currency price, retail investors may lock up their positions due to the reluctance to sell (that is, they are unwilling to sell and want to wait for a higher price), resulting in the market maker being unable to ship smoothly at a high price.
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Through the shuffle, the market maker can screen out the holders who are firmly bullish and attract new follow-up funds to enter the market, so as to achieve "pulling and withdrawing" in the process of pulling up, that is, while pushing up the price, gradually selling the token, and finally cashing out at a high level.
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For example, in the above-mentioned MEME coin case, the project team held 80 million tokens at a cost of $0.008 after completing the wash. Subsequently, they pulled the price from $0.008 to $0.015 and then to $0.02, and the market sentiment gradually warmed up, and retail investors chased higher to buy.
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When the price reaches $0.05, the project team sells 70 million tokens at a cost of $0.008, earning a profit of about $3.5 million.
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After that, they may use the remaining 10 million tokens to continue manipulating the price, back-and-forth between $0.03 and $0.01 to recollect chips and prepare for the next round of speculation.
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2️⃣ Second question: Will the bookmaker wash all the time?
🟨 The time cost of washing
The bookmaker does not wash endlessly, because the duration of the wash is limited by the cost of capital. Market makers usually use leveraged funds, the cost of borrowing is higher, and the longer the time drags on, the higher the interest expense.
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Therefore, if retail investors are unwilling to hand over their tokens, the market makers may increase their shuffling efforts (such as a larger decline or stronger bearish news), but not indefinitely.
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Their goal is to complete chip collection at the lowest cost, and once the expected open interest is reached, they enter the rally phase.
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🟨 The limits of dish washing
When retail investors are generally firmly bullish and reluctant to sell in the wash, market makers may be faced with two options:
🚩 Adjustment strategy: Increase the intensity of the wash, such as forcing retail investors to hand over their tokens through a larger price crackdown or more sensational negative news.
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🚩 Early pull-up: If the wash doesn't work well and the market maker has collected enough tokens to control the market (e.g. 70%-80% of the circulating supply), they may go straight to the pull-up phase, use market sentiment to push up the price, and then ship at a high level.
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Therefore, the market maker will not wash the market all the time, but will flexibly adjust the strategy according to the market reaction and its own financial situation.
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The longer the wash takes, the higher the price may need to be pulled by the market maker in order to cover the cost, but this also increases market risk (such as a systemic crash or regulatory intervention).
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3️⃣ The third question: How to judge the banker's washing intention?
🟨 The difference between washing and shipping
The dilemma faced by retail investors is how to distinguish between washing and shipping.
The core differences between the two are:
🚩 Washing: The price will rise after falling, and the general trend is upward, with the purpose of absorbing chips at a low level and reducing selling pressure.
🚩 Shipments: Prices continue to fall, trading volume shrinks, and the general trend is downward, with the aim of cashing out at a high level.
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Observing the following metrics can help you judge:
🚩 Turnover rate: During the wash period, the turnover rate usually remains at a high level, indicating that there are funds absorbed at a low level; At the time of shipment, the turnover rate gradually decreased, and the market lacked capacity.
🚩 Trend line: When washing, the price runs upwards based on the moving average (such as the 20-day moving average); At the time of shipment, the price falls below the moving average, and the moving average turns downward.
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🟨 Common form of dish washing
The common washing methods used by market makers in the currency circle include:
🚩 Intraday washing: A sudden price crash during the trading day followed by a rapid recovery, commonly found in strong currencies, designed to scare out panic orders.
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🚩5-day line washing: The price continues to rise after stepping back on the 5-day moving average, which is suitable for short-term strong currencies.
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🚩20-day line wash: The price retraces to the 20-day moving average, completing the intermediate wash, which is suitable for medium and long-term currencies.
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🚩 Triangle Wash: The price falls back from the high to the rising point, forming a triangle pattern, which is suitable for the early stage of the big bull coin.
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4️⃣How do retail investors deal with the wash?
🟨 Stick to the bottom stack
In the face of market maker washdowns, retail investors should avoid panic selling, especially when holding low-cost tokens. Methods for judging the bottom area include:
🚩 Chip Concentration: The bottom chip concentration area is usually the cost zone of the dealer.
🚩 Turnover rate: A turnover rate of more than 200% over a period of time may indicate a market maker cost range.
🚩 Volume and energy pile: The average price of volume accumulation is often close to the cost of the market maker.
🚩 Large single pressure: The handicap appears as a large single pressure plate, which is usually the cost position of the bookmaker, and it often rises after the pressure.
As long as the holding cost of retail investors is lower than that of market makers, there is no need to worry about being washed out.
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🟨 Rational judgment of trends
Retail investors should avoid subjective speculation and blindly believe that a decline is a wash or a rise is a temptation. It is recommended to judge the trend according to the disk signals (such as the direction of the moving average, the change in volume), and sell high and buy low at key points (such as the cost area of the bookmaker) and wait for the pull-up.
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🟨 Control risk
The operation of market makers in the currency circle is often "killing people without seeing blood", and retail investors should allocate funds reasonably to avoid excessive concentration in a single currency.
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If you can't see through the intentions of the market makers, it is best to avoid highly controlled currencies and choose to invest in head projects with strong fundamentals.
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At last
In fact, brothers, the dealer shuffles the dishes well, and when the retail investors refuse to hand over the chips, the dealer will not continue to wash the plates. The purpose of the shuffle is to collect tokens at a low cost, reduce the pressure to pull up the selling, and pave the way for high-level shipments, rather than simply grabbing retail chips.
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Due to the limitation of time cost and financial pressure, the bookmaker will adjust the strategy when the washing effect is not good, either increase the intensity or pull up in advance.
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The key for retail investors to cope with the market wash is to stay calm, stick to low-cost chips, and judge the trend through the market signals.
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As long as you grasp the operation logic and cost area of the banker, retail investors can avoid becoming "leeks", and even dance with the banker and get a piece of the pie.
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In the cryptocurrency market, which is full of games, understanding the deep meaning of market makers is the first step for retail investors to protect their own interests.
Hopefully, this article will provide you with some inspiration and help you be more prepared in your future investments.
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