Crypto trading is known for its volatility. Recently, the GUN token on Binance experienced high-frequency selling, leaving many investors puzzled. On-chain analysis suggests that a Launchpool bot operated by a whale might be involved.
Unveiling the Suspicions: Launchpool Bot and GUN Token Sell-Off
According to analyst @ai_9684xtpa, the intense selling pressure on the GUN token might be linked to a Launchpool bot by a large investor. The basis for this theory lies in the enormous volume of sell orders shortly after the token's listing. Binance Launchpool allows participants to farm new tokens for free, a situation that can enable a whale to quickly sell accumulated GUN tokens, as observed.
Earlier Speculation: Market Maker or Launchpool Bot?
Initial theories suggested a market maker's role in the selling activity. However, further data revealed that market maker tokens hadn't been distributed by the time of the selling, weakening this hypothesis. The Launchpool bot theory becomes more plausible given the potential for rapid accumulation and sales by a whale.
Analyzing the Crypto Selling Pressure: What Does It Mean for GUN Token?
The potential involvement of a bot in creating selling pressure raises questions about its implications for GUN token and investors. It may lead to high price volatility, reduced trust, and concentrated token holdings, undermining decentralization. On-chain analysis can help identify large transactions and enhance market transparency.
The speculation surrounding GUN token’s sell-off and potential bot involvement highlights the importance of on-chain analysis and market transparency. It emphasizes the need for thorough research and caution when investing in crypto.
