Flockerz - $FLOCK. the people's meme coin.Pernicious Centralization of Influence in Crypto Market
It has been well over a decade since the appearance of the first digital currencies. But have they been true to their promise?
Puya Chamer, the founder and CEO of Counos believes that digital currencies have strayed so far off their original purpose and promise of decentralization.
The reason he states is that crypto came about because it wanted to provide a decentralized financial system where each and every user has true power.
But unfortunately what we see today with a lot of crypto projects is that there is a pernicious centralization of influence where a group of people can affect the market however they want.
Crypto Market in the Hands of Few
As was mentioned in the beginning, what we can see is an unfortunate centralization of power. But who are they and how can they control the crypto market?
To answer these vital question, Puya Chamer starts by saying:
This small group of elite, who are amassing more and more wealth every day, control the prices in the crypto market in different ways, for instance with the help of influencers and the pyramid scheme they have created in their network.
Therefore, what is essentially taking place is that this small group controls that information about digital assets and gives people and small investors the wrong information about a certain asset – which ultimately leads to the pump and dump of the asset.
By providing the wrong information, they are in fact taking people’s assets from them and never giving back.
This is quite tragic for thousands and thousands of people who have lost their life savings so far and this vicious cycle will unfortunately happen again.
By careful consideration of the market, it can be seen that all the major crypto projects belong to this small group of manipulators.
Through their fraudulent activities, they bring in people’s money into their project. All the money remains inside this group among these elite people. And more importantly, the money never exits. It only goes from one member to another.
The only victim, unfortunately, are the investors who get fooled into investing in these projects.
Find the Manipulators
But it is very important to point out that not all projects are scams. So, which projects are fraudulent? And how to pick the manipulators from the real projects?
Unfortunately, some of the worst manipulators are in fact that big names. Some users of the crypto market may believe that only small players in the market can be manipulators and that the big names are to be trusted.
But that is not true. We have seen on numerous occasions how big names have turned their back on their users and owners and basically stolen their money. This is exactly what happened with the FTX exchange and the FTX Token.
But in this article, I want to briefly analyze Ethereum – the second digital currency by most major listings and ranking factors.
If we only go back about two years and take a look at the price of Ethereum in March of 2020, we can see that the price of ETH was around and average of $230.
Flash forward to November 2021 and the price of ETH has reached an ATH of about $4700.
And now, in less than a year the price of ETH has plummeted to around $1200. In fact, majority of market analysts predict that it will go even further down.
What happened to justify all these heavy ups and downs?
The sad reality of the crypto market is that there is a just bubble price. The whole thing is a big money game to the few manipulators in the market to pump the assets, take people’s money, and then dump again.
Find the Genuine Crypto Projects
There you have it, the unfortunate reality of the crypto market. Crypto projects that are all based on lies and the networking of the powerful and rich few.
But it’s not all dark and gloomy, because Puya Chamer ends his analysis of the crypto market manipulations on a positive side:
However, luckily, there is a light at the end of this tunnel. Because not all crypto projects are fraudulent. You need to be very careful about which projects to choose. You must pay attention to projects that are genuine and based on reality. One good indicators are to look out for the cap. Projects whose market cap is proportional to the value of the project and the coin that they offer. So, there are still some projects that are real and offer the true advantages of Blockchain in the crypto market.