Shanzhai Coin Contracts: A Predestined Pump-and-Dump Scheme Where Retail Investors Are Guaranteed to Lose

$ARIA ‌ $RAVE ‌

After personally experiencing multiple margin calls and asset zeroing out in Shanzhai coin contracts, I finally see clearly: Shanzhai coin contracts are never about trading, but a one-sided scheme designed by the manipulators to harvest retail investors, who have no chance of winning and are precisely manipulated throughout.

The first step in harvesting retail investors in Shanzhai coins is precise traffic diversion. They rely on long-term dominance of the contract gainers list to create a “fake illusion of huge profits,” then use communities and social media bots to flood posts and hype, using eye-catching gains to trigger greed and FOMO among retail investors, making them mistakenly believe they’ve caught a “get-rich-quick opportunity,” and willingly enter the market to buy in.

And this contest has been extremely unfair from the start; retail investors fundamentally cannot compete with the manipulators. When the manipulators are pushing the price up, they do so silently, with the coin’s activity completely silent before launch, no signs, no signals, making it impossible for retail investors to predict which coin will suddenly surge. The manipulators hold absolute chips, raising prices at will, with no cost; they can push up or raise at will. Retail investors, however, have no chips, no information, and can only follow passively, with even the timing of entry fully controlled by the manipulators.

Even if retail investors are lucky enough to pick the right direction and follow the manipulators’ rhythm, they still cannot escape being harvested. The manipulators will violently shake out weak hands with aggressive wash trading, causing those with weak resolve to be forced out; if wash trading fails, they will enter long periods of sideways consolidation, gradually eroding retail investors’ positions through continuous adjustments of funding rates, forcing them to exit. Even if you stubbornly hold without stop-loss or take-profit, your profits will ultimately be heavily eroded, ending up with nothing.

From start to finish, retail investors are playing an open book, with their positions, mentality, and operations all under the manipulators’ watch; while the manipulators hide in the shadows, holding chips, controlling the trend, and setting the rules. Harvesting is just a matter of a few finger movements—whether to specifically target retail investors depends on how much value there is to harvest. This is not a market game, but a carefully planned scam with no fairness whatsoever.

Today, exchanges have launched many compliant US stock tokens. Compared to the worthless, hopelessly manipulated Shanzhai coin contracts, genuine assets with no malicious control and compliance are the rational choice. The chaos of Shanzhai coin contracts will eventually be rectified; this kind of scheme that relies solely on manipulation to harvest and has no underlying value is destined to be abandoned by the market.